Kuwait – Mubasher: Capital Real Estate, a subsidiary of Salhia Real Estate, on Monday announced signing banking facilities amounting to KWD 10 million with a local Islamic bank, according to a bourse filing.
The loans will be repaid on an eight-year period and will be used to finance the capital expenditures to establish Al Assima project, the statement showed.
Hence, the Murabaha limit has increased to KWD 24.5 million from KWD 14.5 million.
The cost of financing will be capitalised until the end of the project, then recognised as an expense in the income statement at the end of the project in 2020.
The company had signed a KWD 5 million banking facilities agreement with a local Islamic bank in March.
Capital Real Estate had previously reported a 50% rise in net profits to reach KWD 4.62 million in the first quarter of 2017, compared to KWD 3.08 million in the same period in 2016.
