Kuwait – Mubasher: Manazel Holding said that its subsidiary, Manazel Developments, will end the duration of the real estate initial sale contract which was signed with a local bank on 30 November, 2014.
The contract has a value standing at KWD 2.50 million, the company noted in a bourse filing.
The contract guarantees transferring the ownership of a property in Abraq Khaytan area to the bank, the statement said, adding that the company has the right to repurchase the real estate unit for KWD 3 million within the first year.
Based on the contract, Manazel has the right to buy the property for KWD 3.5 million in the second year, it added.
Manazel has repaid KWD 1 million as a first installment of the property’s recoverable amount, the company said, adding that it has requested the bank to renew the contract, but the request was rejected.
In case of not applying the recovery of the property, Manazel’s assets and liabilities will be decreased by about KWD 2.50 million, and losses worth about KWD 39,650 will be registered in the financial statements of the fourth quarter this year, the bourse filing added.
On the stock level, Manazel fell by 3.57% to reach 27 fils by the end of Tuesday’s session.
