Kuwait’s United Real Estate Company (URC) announced on Thursday that it has signed the contract for the Waterfront Real Estate Project - Phase 3 which it was awarded in February

In a bourse disclosure statement, URC said a wholly owned project-dedicated subsidiary, United Marasi Company for Lands and Real Estate Development signed the deal with the department of state properties at the Finance Ministry on Wednesday.

The contract covers upgrading, development, repair, major rehabilitation, management, operation and periodic maintenance, the company said.

“The annual right-of-use fee amounts to 13.1 million Kuwaiti dinars  ($42 million) for a period of 16 years from the date of handover,” it added.

The project will be implemented under a 15-year Build-Operate-Transfer (BOT) usufruct arrangement with a additional one-year grace period allocated for design and refurbishment works.

Kuwait Authority for Partnership Projects (KAPP) awarded the project to URC in February 2026.

In January, the company disclosed that it had submitted the highest financial bid in the tender competition, without revealing the value. A total of six consortia and a single company – UREC - had submitted bids for the project.

On 20 February 2023, Kuwait-listed National Real Estate Company (NREC), the property’s previous operator, had said in a stock exchange disclosure that the cancellation of its 20-year operating contract would result in an estimated KWD 5 million ($16.3 million) annual net revenue loss.

The waterfront project was tendered alongside the Al Muthanna Complex Real Estate Project, which KAPP recently awarded to a consortium led by Real Estate House.

(Writing by N Saeed; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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