The Commercial Real Estate Company reported KD 7.97million net profit at the end of nine months.
Abdulfatah M R Marafie Chairman of the Commercial Real Estate Company said that the company had kept its ongoing growth compared to the same period last year, where the percentage of return on equity has reached 3.13% and the percentage of return to capital is 4.7% while the return to total assets reached 2.16%.
The business outcome of the company has shown a remarkable improvement where the income of real estate: that includes the income of the rented real estate and the Hotel has reached 14.3 Million Kuwaiti Dinar for the nine months ended on 30.09.2014 which reflects a strong growth on the income to the tune of 11.3% compared to the same period last year.
Marafie has also added that the company entered, in alliance with investors, a new investment in Ashbourne Beech Property Limited BVI that has controlling rights of developing a land with an area of 44,500 square meters. Ashbourne owns the right of developing this land that consists of ASDA Super Market and car parking. And after acquiring the final approval of the plan an added value of the location will be created. And the value of Al Tijaria’s investment in this project is 5 million British Pounds.
Al Tijaria Real Estate Company had also entered a new property investment for an amount of $5 million in alliance with a group of investors and in cooperation with Arzan Wealth (DIFC) Limited our advisor on this investment. The property is located in a suburban area of Chicago. The Property consists of various office departments supplemented by research, development and testing laboratories. It is 60% occupied by “Continental Automotive System INC”USA headquarters for their automotive interiors division, under a new 13-year lease agreement. The Continental asset is expected to provide a secure income stream, equating to an average of 7.75% per annum, payable monthly, from the occupied area.
Marafie had explained that the company entered a new investment in the Republic of Turkey for an amount of $10 million.
He also said that entering this investment was through a special purpose company in alliance with other investors. The main objective of this investment is buying and developing pre-targeted farmlands in an area of 10 million square meters.
The investment represents developing and cultivating the land, to produce the agricultural crops in partnership with one of the international companies specialized in the production and exporting of concentrated juices which in turn will buy and market the agricultural crops resulting from this project.
Marafie also added that the company entering new investments comes within the company’s policies and strategies developed to enhance the company earnings and future cash flows.