Alragan International Real Estate Company announced that an investment fund wholly owned by the company finished the second deal concerning the sale of its remaining share in a partner company in the Kingdom of Saudi Arabia, worth 521.32 million Saudi Riyals (around KD41.6 million).
The company earned a net profit of 317.34 million Saudi Riyals (around KD 26 million) from this exit process. The profit will be added to Alragan International Real Estate Company’s results for the second quarter of 2015.
The deal is considered one of the most important for the company, as the profits earned are almost equal to the company’s capital, while the cash received is 150% larger than the capital.
‘Life… as you love it’ is the company’s motto. Increasing the returns and dividends is the basis of the new strategy. The deal’s results serve the company’s efforts to boost ways of achieving its strategic goals for the next five years.
Eng. Khalid Khudhair Al-Mesh’an, Vice Chairman and Chief Executive Officer of Alragan International Real Estate Company, said in this regard: “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. 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.
ALARGAN seizes investment opportunities and targets new regional markets in line with its strategic goals, ALARGAN 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 BOT contracts. The mall is expected to have a renting area of 10,000 square meters, and a construction area of 13,000 square meters.
The company also is the only one that has received the LEED (Leadership in Energy & Environmental Design) platinum ranking from the U.S. 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, ALARGAN continued successfully in presenting innovative real estate solutions in different Gulf Cooperation Council countries. It finished the ARGAN Village project in the Kingdom of Bahrain, which is the commercial part of the Jeyoun integrated project.
In the Sultanate of Oman, the company finished a large part of development works in phase I of the Telal Al-Qurm project. Meanwhile, works are still ongoing at phase I of Al-Waha project; which can be described as an integrated residential complex that consists of residential components and commercial buildings, and is built over an area that exceeds 684,000 square meters in Baraka.
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.