Kuwait Developer National Real Estate Company Posts 9.8percent Rise In Q1 Net Profit

National Real Estate Company (NREC), the Kuwait-based developer with projects exceeding $1 billion in Egypt and the UAE, has announced first quarter net profits of KD3.6 million ($11.9 million), an increase of 9.8 percent from the same period last year.

The company said it registered revenue growth in key income generating assets in Kuwait and Egypt, where it is developing a 3.8 million sq m residential community.

NREC is also developing Reem Mall, a two million square foot major shopping destination in Abu Dhabi which will house more than 420 stores, 85 restaurants, a large hypermarket, and family entertainment zones including the world's largest indoor snow-play park.

The development is scheduled to open in 2018, with main construction work set to start this year. The company is currently evaluating bids from a select group of contractors.

NREC said in a statement that leasing interest is exceeding its expectations and is in discussions with retailers for more than 70 percent of the total space.

NREC CEO Samuel Sidiqi said: "We've had a positive quarter despite economic pressures in the region.

"We have also crossed important milestones with Reem Mall in Abu Dhabi. Enabling works commenced while the tendering process for the main contractor is under way. Reem Mall is an exciting landmark project that has attracted strong interest from top international retailers looking to grow in the region."

He added that NREC's outlook for the remainder for 2016 is positive with Egypt, Kuwait, and Jordan set to continue to provide strong cash flow for the company through rental income streams and unit sales.

 

SOURCE : ARABIANBUSINESS

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