Kuwaiti Munshaat’s subsidiary receives 25% rental cut in Saudi Arabia

The rental value reduction amounts to $1mln

Panoramic view of Kuwait City skyline at down. Image used for illustrative purpose.

Panoramic view of Kuwait City skyline at down. Image used for illustrative purpose.

Getty Images/Emad Aljumah

Kuwait -Munshaat Real Estate Projects Co announced that its fully owned subsidiary in Saudi Arabia, Munshaat for Projects and Contracting Co, has received a notification letter from competent authorities in KSA of a 25% reduction in the annual rental value due on its Dar Al Qiblah project.

The rental value reduction amounts to SAR 4 million and shall last for a period of five years starting from 2019, where total reduction value will equal SAR 20 million (KWD 1.6 million), Munshaat said in a filing to Boursa Kuwait on Wednesday.

Munshaat further predicted that the said reduction will lead to a KWD 1.3 million rise in its shareholders’ equity during the fourth quarter of 2019, noting that the forecast is yet tentative and is subject to Munshaat’s auditors’ approval.

In the first half of 2019, the company suffered losses worth KWD 1.3 million, 34.7% lower than KWD 1.99 million in H1-18.

Source: Mubasher

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