Kuwait-based Alragan International Real Estate Company said its investment fund has completed the second deal concerning the sale of its remaining share in a partner company in Saudi Arabia, worth SR521.32 million ($139 million).

The company earned a net profit of SR317.34 million ($85 million) from this exit process, said a statement from Alragan. The profit will be added to its results for the second quarter.

Alragan said the deal was one of the most important for the company, as the profits earned were almost equal to the company’s capital, while the cash received was 150 per cent more than the capital.

“Our new strategic plan for the next five years is listed under the title of regional leadership in property development by 2020. ‘Life… as you love it’ is our motto for the next stage. The strategy is based on adding joy to clients’ life through Alragan’s residential and commercial projects, and developing integrated centers with a lifestyle that combines quality and reasonable prices," remarked Khalid Khudhair Al-Mesh’an, the vice chairman and CEO.

"The strategy is built on other bases, which include entering partnerships that improve the value of invested lands, investing in safe properties with stable financial returns, encouraging employees to ensure success, expanding into new markets, guaranteeing the highest level of flexibility, and providing necessary liquidity to achieve the highest level of returns and dividends," he added.
 
According to him, Alragan seizes investment opportunities and targets new regional markets in line with its strategic goals.

It is currently improving its income generating real estate portfolio by developing the Argan Square – a retail shopping mall in Salmiya based on long-term private build-operate-transfer (BOT) contracts.

The mall is expected to have a renting area of 10,000 sq m, and a construction area of 13,000 sq m.

The company has also received the Leed (Leadership in Energy & Environmental Design) platinum ranking from the US Green Building Council (USGBC) for its headquarters building ‘Argan Business Park’ located in Kuwait’s Free Trade Zone.

The building reflects the group’s commitment to creating an environment based on the highest international levels, and is in harmony with nature thus improving the quality of life.

On the regional level, Alragan continued successfully in presenting innovative real estate solutions in different GCC countries, said Al-Mesh’an.

It has completed the Argan Village project in Bahrain, which is the commercial part of the Jeyoun integrated project, he noted.

In Oman, the company finished a large part of development works in the first phase of the Telal Al-Qurm project. Meanwhile, works are still ongoing at phase I of Al-Waha project; an integrated residential complex that consists of residential components and commercial buildings.

It is being built over an area that exceeds 684,000 sq m in Baraka, he stated.

These results reassert the company’s direction towards diversifying its investments on the categorical and geographical levels, without neglecting its main field of business that centers onproviding housing solutions in calculated prices, and investing in profit generating projects, he added.-TradeArabia News Service