National Real Estate Company (NREC), a Kuwait-based developer with projects exceeding $1 billion in Egypt and the UAE, has signed an agreement for a $101.5 million loan. The developer of Abu Dhabi's upcoming Reem Mall said in a statement that it has signed the five year convertible loan with Agility Investment Holding Limited, a subsidiary of Kuwait-based logistics firm Agility.
The loan facility has the option of converting into NREC shares prior to the maturity date, the statement said. NREC said the cash inflow will be used to strengthen its liquidity and underpin the company’s strategy of investing in its core markets.
"This includes supporting the completion of existing projects that are in early stages of delivery, and exploring new growth opportunities at a time when capital values are becoming more attractive," the company added.
NREC has a portfolio of real estate developments across the Middle East and North Africa and is currently developing Reem Mall in Abu Dhabi and Grand Heights, a luxury residential development in Egypt. The new loan facility will allow the company to finance projects and will benefit NREC shareholders as the company delivers on its commitments and assesses new growth opportunities, it said.
Sam Sidiqi, NREC’s Group CEO said: “This initiative builds on the NREC’s consistent and positive financial results during the last four years, and allows us to invest in a new chapter of growth.”
Source: Arabian Business