National Real Estate Company (NREC) said it has won approval from shareholders to convert the KD31-million ($101.7 million) loan taken from Agility Investment Holding Limited Company into 272.8 million shares in the company's share capital at the nominal value of 100 fils per share and share premium.

Agility Investment Holding is a subsidiary of Agility Public Warehousing Company.

The shareholders nod for conversion of debt into equity came at the company’s extraordinary general meeting held in Kuwait City. With this move, NREC’s capital has increased to KD136.1 million (($447 million), while Agility Investment now owns a 20.04 per cent share.

NREC vice chairman and CEO Faisal Jamil Sultan Al Essa, said: "The convertible loan was taken by NREC to strengthen its liquidity, support the development of projects that were in their early stages as well as invest in growth opportunities. We are glad to have had the opportunity to work closely with a leading group such as Agility to support our strategy for growth."

The convertible loan was signed in February last year for a total value of KD31 million.

Established in 1973, NREC is a real estate investment, development and property manager based in the Middle East and North Africa, developing assets exceeding $2 billion.

Its portfolio comprises a mix of retail, commercial and residential properties in the region. In addition to its core real estate business, NREC is the largest shareholder with a 22.3 per cent share in Agility Logistics Company, one of the top ten logistics companies in the world.-TradeArabia News Service