Al Mazaya Holding Co (K.S.C) a leading property firm in the region, signed a contribution contract with “Oman Construction” to share in a real estate investment portfolio in Oman with a capital of OMR 3.1 million. Al Mazaya’s share is 40% while 12% is for Oman Construction and 12% for “Mina” real estate company. The remainder of the percentage is submitted for IPO from a chosen group of investors and real estate companies.
Response to a press release
With reference to the above-mentioned subject and article 4-4 of chapter 4 of book 10 of the executive regulation of law No.7 of 2010 regarding the establishment of the Capital Markets Authority and regulating securities’ activities, kindly find attached disclosure of material information form:
Disclosure of material information Form
| Date: | 09/10/2019 |
| Name of listed company | Al Mazaya Holding Co. K.S.C. P |
| Material information | Commenting on the press release that was published through some Kuwaiti newspapers and websites under the titles “11th Forum of Listed Companies & “The agreement with the banks to restructure the indebtedness”, where the press release included the following:
The company was able to agree with the majority of banks to restructure its debts and obtained 7 million dinars to be employed in various projects, and we would like to clarify that this amount will be used to meet the financial obligations related to the existing business and projects of the company and not necessarily to be injected into new projects.
It is also stated as part of the press release that the company aims to have its real estate operations distributed by 50% revenue generating assets and 50% available for sale assets, and we would like to clarify that the company aims to distribute its real estate operations by 70% revenue generating assets and 30% available for sale assets.
It is also stated as part of the press release that the company has adapted its operations with the latest real estate developments in Dubai market and that it is preparing for proceeding with business operations in the Emirate of Dubai, and we would like to clarify that given the significant challenges in the real estate market in Dubai during the previous period, the company is in the process of reducing its business and projects in Dubai in addition to evaluating the available for sale projects in order to respond to these challenges. Moreover, the company will assess the level of improvement in the real estate market in Dubai, and upon which decide whether to proceed with business operations in the Emirate of Dubai. It is also stated as part of the press release that the decline of the currency in Turkey affected the company’s business; however, the impact was limited, with an expectation to overcome the impact during the upcoming period, and we would like to clarify that the decline in the currency in Turkey had a negative impact on the company’s financial statements and the company is still exposed to the Turkish currency fluctuations, however; with a lower impact than previous period and that is mainly a result of the sales activities of most of the units available for sale in Turkey during previous periods. |
| Effect of the material information on the company financial position | No financial impact |
