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Gulf property developer Al Mazaya Holding is expecting its revenues to drop as it offers incentives to help investors and tenants cope with the coronavirus pandemic.
The Kuwait-based company has several projects across the GCC.
With total assets worth more than 229 million Kuwaiti dinars ($744 million) as of 2019, it has adopted some measures, including the postponement of rental fees, to alleviate the financial impact of the crisis on its clients.
In a filing to the Dubai Financial Market on Wednesday, the firm said the move will take a bite out of their rental revenues.
“Some of the subsidiaries of Al Mazaya Holding Company have adopted a package of incentives aimed at supporting real estate investors and tenants by postponing and deducting part of the rental fees during the crisis period,” the company said.
“These measures will result in a reduction in rental revenues,” it added.
However, the company didn’t provide any further details on how long the postponement of payments will last and in which financial period the impact of the coronavirus incentives will appear.
The company noted that the pandemic has affected its subsidiaries, investors and real estate tenants.
Mazaya’s portfolio includes ready-to-use apartments and commercial spaces. In 2019, its revenues reached more than 27 million dinars, up from 22 million reported a year earlier.
Last May, it reported the sale of its Dubai property for 77 million UAE dirhams ($20 million).
(Reporting by Cleofe Maceda; editing by Seban Scaria)
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