Consortium signs $457 million credit facility
KUWAIT – November 21, 2017 – Agility, UPAC, and NREC, the consortium behind Abu Dhabi’s Reem Mall, a retail, leisure and entertainment destination, announced today that financing for the $1.2 billion project is now complete, by signing the largest real estate asset based facility in the United Arab Emirates in 2017.
“The business climate in Abu Dhabi is one of the things that makes it so attractive to investors. The speed with which Abu Dhabi authorities completed the formalities to proceed with Reem Mall is a great example of efficiency in action,” said Tarek Sultan, CEO, Agility. “The Agility group is making a significant investment in Abu Dhabi because we strongly believe in the Reem Mall project and in Abu Dhabi’s growth prospects.”
Reem Mall, located on Abu Dhabi’s Reem Island, will offer 2 million sq. ft. of leasable area (2.9 million sq. ft. of floor area) comprising 450 stores housing local and international brands, including 85 food and beverage outlets. It will feature education-oriented anchors and family-focused entertainment, including Snow Park Abu Dhabi, a destination attraction.
The project is being developed by Al Farwaniya Property Developments, a partnership between Agility, Agility affiliate United Projects for Aviation Services Company (UPAC), and National Real Estate Company (NREC). Together, the companies bring a sound financial base, deep experience in asset management and commercial real estate development, and a track record of successful mall operations.
To complete the financing, Al Farwaniya signed an agreement for a $457 million senior credit facility. The seven-year credit facility is provided by regional and international banks: Abu Dhabi Commercial Bank (ADCB), Gulf Bank Kuwait, Noor Bank, and Standard Chartered Bank. The facility is subject to final conditions, and is expected to be completed shortly.
Faisal Sultan, Chairman of NREC, said: “Reem Mall is moving forward in an exciting way. It is one of the most significant leisure and retail developments ever undertaken in Abu Dhabi. We look forward to the day it opens its doors to its residents and visitors.”
The Reem Mall site is located in the Najmat District on Reem Island, the residential and commercial master development by Reem Developers. Reem Island is expected to have a population of 200,000 residents at completion.
About Reem Mall
Reem Mall is Abu Dhabi’s major new retail, leisure, dining and entertainment destination. The Reem Mall project will comprise 450 stores, including 85 F&B outlets and a range of family-focused entertainment offerings including Snow Park Abu Dhabi by Majid Al Futtaim.
Please connect with us on Facebook: facebook.com/reemmall
About Agility
Agility brings efficiency to supply chains in some of the globe’s most challenging environments, offering unmatched personal service, a global footprint and customized capabilities in developed and developing economies alike. Agility is one of the world’s leading providers of integrated logistics. It is a publicly traded company with more than $4.1 billion in revenue and more than 22,000 employees in over 500 offices across 100 countries. Agility’s core commercial business, Global Integrated Logistics (GIL), offers air, ocean and road freight forwarding, warehousing, distribution, and specialized services in project logistics, fairs and events, and chemicals. Agility’s Infrastructure group of companies manages industrial real estate and offers logistics-related services, including e-government customs optimization and consulting, waste management and recycling, aviation and ground-handling services, support to governments and ministries of defense, remote infrastructure and life support, and commercial real estate services.
For more information about Agility, visit Agility.com
Twitter: twitter.com/agility
LinkedIn: linkedin.com/company/agility
YouTube: youtube.com/user/agilitycorp
About NREC
Established in Kuwait in 1973, NREC is a publicly listed real estate and investment company with a presence in the Middle East and North Africa. Over the years, NREC has grown into one of the largest real estate companies in the region with assets exceeding US$ 1.8 billion. Headquartered in Kuwait, NREC has subsidiaries and developments across the MENA region, including the UAE, Egypt, Jordan, Iraq, Lebanon, and Libya. NREC’s portfolio of projects (completed or under development) includes offices, mixed use centers, industrial parks, residential communities and super-regional malls. In addition to a strong track record in property development, NREC brings experience and required knowledge in property management of commercial complexes and shopping centers.
About UPAC
Established in 2000, publicly listed on Boursa Kuwait, and headquartered in Kuwait, UPAC is a leading commercial real estate and facilities management company with a specialization in Build Operate Transfer (BOT) initiatives. Its services cover project management and consultancy, real estate development as well as property and facilities management. UPAC manages over 24,000 sqm of commercial space at the Kuwait International Airport, Sheikh Saad Terminal and other prominent locations within the country.
For more information please visit the website: www.upac.com.kw
About Reem Developers
Headquartered in Abu Dhabi, Reem Developers is one of the key developers in the capital, contributing to the city’s cosmopolitan skyline in alignment with the Abu Dhabi 2030 vision. A subsidiary and real estate arm of the prestigious Reem Investments, Reem Developers delivers immaculate quality projects, leaving a mark on the city with creative, efficient and functional design. With a diverse portfolio of successful projects, Rawdhat, Najmat and Nalaya villas are a few that have redefined vibrant living and tranquil bliss in one setting. A blend of natural beauty and modern innovation, these projects rise to the forefront with their conceptual essence, highlighting the distinguished standard Reem Developers produces.
About Najmat
Najmat, a 165 hectare Manhattan-like township covers 20% of Reem Island. Najmat will be home to residential and commercial towers and will also feature a marina, canal, waterfront promenades, hotels, shopping malls, schools, healthcare facilities, mosques, parks and ample open spaces. The first two of three infrastructure phases are complete and development is currently underway.
State-of-the-art building receives prestigious LEED Silver certification
KUWAIT CITY – Nov. 14, 2017 – Agility, a leading global logistics provider, has been awarded the LEED Silver certification for its new environment-friendly management building in Sulaibiya, Kuwait.
The LEED rating system, developed by the U.S. Green Building Council (USGBC), is the foremost program for buildings, homes and communities that are designed, constructed, maintained and operated for improved environmental and human health performance. The Agility Management Building, which was finalized in January 2017, was built with state-of-the-art sustainability features that maximizes the use of natural light while improving overall cooling efficiency and energy use.
The 834 sq.m. building is equipped with solar thermal panels, which provide the energy needed to operate the air-conditioning units. The building also includes triple-pane windows that are covered in electro chromic coating, to adjust tint in response to external conditions, allowing light to pass through while blocking heat and increasing energy efficiency.
Tarek Sultan, Vice Chairman and CEO, Agility said, “Responsibility is ingrained in Agility’s corporate DNA, and we take carbon footprint reduction very seriously. Creating a better environment for our talent is an important component of our overall sustainability efforts.”
Sultan added: “This achievement is the result of years of collaboration not only with our planners, architects, and contractors, but also in consultation with our employees. We hope to replicate this model in future infrastructure projects.”
Mahesh Ramanujam, President and CEO, USGBC, said: “LEED is a transformative tool that ensures a building is designed and operating to achieve high performance in key areas of human and environmental health while enhancing the triple bottom line – people, planet and profit. By prioritizing sustainability, the Agility project is leading the way in their industry and helping USGBC continue toward our vision of a sustainable built environment within a generation.”
In Kuwait, Agility is one of only four certified projects, and one of 38 registered LEED projects in the country. Incorporating green building practices in the construction industry is a critical way for Kuwaiti companies to help meet the country’s sustainability targets.
More than 38,600 commercial projects have been LEED certified across 167 countries. LEED is the most widely used third-party verification for green buildings, with around 2.2 million square feet certified daily. LEED-certified buildings are resource efficient, using less water and energy and reduce greenhouse gas emissions.
The LEED Silver certification is one of a number of environmental projects and achievements for the company. The Agility 2016 Corporate Social Responsibility Report showcases its commitment to building a greener supply chain, including sustainable construction and upgrades to warehouses and logistics facilities, and achieving ISO 14001 certification in 19 countries; 48% of Agility employees work in an ISO 14001 certified site.
Download the full Agility 2016 Corporate Social Responsibility Report here.
Training programs designed to upskill local talent in the oil and gas industry
DUBAI – October 11 2017 – Agility, a leading global logistics provider, has opened a state-of the-art training facility, known as the Center of Excellence, at the Rumaila Energy Park in southern Iraq.
In partnership with Strategic Analytics Team (SAT), the Center of Excellence offers training courses for the local workforce in the oil and gas industry, led by internationally accredited trainers. Training covers a wide variety of topics, including health and safety, lifting and hoisting, defensive driving and logistics solutions. With SAT’s expertise in the field of operational logistics, courses will meet international oil and gas industry standards and focus on developing accredited local content, while enhancing the capabilities of Iraq-based contractors.
The Rumaila Energy Park is a one million-square meter, fully serviced industrial park developed by Agility Real Estate to provide a one-stop-shop for companies operating in southern Iraq. The park includes warehouse facilities, workshops, lay-down yards and offices. It is strategically close to the region’s major oil and gas subcontractors.
The inauguration was attended by representatives from oil and gas companies and academic institutions, as well as Iraqi government officials.
“The Center of Excellence is part of Agility’s ongoing commitment to building Iraq’s infrastructure and human capital. We are strongly committed to building local capacity in our areas of operations, and this new center is part of this strategy,” Colin Hindley, CEO, Agility Iraq, said.
Paul Jorgensen, Senior Partner, Strategic Analytics Team, said, “Our partnership with Agility makes the Center of Excellence the first of its type in the Gulf region. At SAT, we take pride in our knowledge and skills in the logistics business, and we are in a unique position to impart the same to aspiring professionals seeking further development. This is a very exciting opportunity for both SAT and Agility. With a fully developed culture of learning in an open environment that enables access to the latest information and technological innovations, we want the Center of Excellence to become the go-to resource for both logistics companies and students.”
Agility Iraq has offices in Basra, Baghdad, and Erbil, serving international airports and the ports of Umm Qasr and Khor Al Zubair. Agility’s operations include freight forwarding (air, ocean, road), cross-border trucking, customs clearance, project logistics, open yard/warehousing distribution, approved HSSE training and route surveys. All of Agility’s operations in Iraq are ISO 9001, ISO 14000, OHSAS 18001-certified.
Ali Shaddad Al-Fares, Chairman of Oil and Gas Committee, Basra Provincial Council with Colin Hindley , CEO, Agility Iraq and the Agility team.
Annual competition portrays Africa’s technological shift
JOHANNESBURG – Oct. 9, 2017 – Agility, a leading global logistics provider, today announced the winners of its Africa 2017 Photo Competition, an annual competition showcasing the rapidly changing landscape of Africa.
The contest, now in its third year, drew more than 4,000 entries from professional and amateur photographers from more than 60 countries. The images captured the transformation and modernization of Africa and were grouped into three categories: cities, industries and technology. The winning images showed young Malawian students using tablets at school to learn their local language; a sunset over Nairobi, Kenya; and hot air balloons flying over Luxor, Egypt.
A cash prize of $2,000 was awarded for each competition category. The winners were Judith Hermetter from Great Britain (Technology); Joshua Wanyama of Kenya (Cities); Mohamed Kamal of Egypt (Industry). Hermetter also won the Grand Prize of $2,000 for her photograph of the young Malawian students learning to read using a tablet.
The winning photographs will be showcased on a CNBC Africa telecast, published in Forbes Africa, and featured in Agility social media, promotions and advertising.
“Technology has the potential of being transformational – it can provide personalized quality education in a cost-efficient and scalable way,” Hermetter said.
Geoffrey White, CEO, Agility Africa, said Africans and African governments are “embracing technology – and as a result transforming all parts of society. This year’s Grand Prize photograph illustrates the technological shift that is empowering people with access to knowledge and information. As a company investing heavily in African infrastructure, Agility is seeing the advancements the continent has made on a daily basis, and we are proud to share images that reflect these changes.”
The competition was judged by an independent panel that consisted of Sneha Shah, Managing Director, Thomson Reuters Africa; Bronwyn Nielsen, Editor-in-Chief, CNBC Africa; and Salim Amin, Chairman of CameraPix and co-founder of Africa24 Media.
“Agility’s photo competition is key to getting the message out about what is really going on in Africa – the alternative energy sources from wind, sun and water; the leading edge technology in schools; the tourism opportunities, and our vibrant and growing cities,” said Nielsen.
Technology & Grand Prize: Judith Hermetter | Great Britain
Cities: Joshua Wanyama | Kenya
Industry: Mohamed Kamal | Egypt
Agility, a leading global logistics provider, today reported second-quarter earnings of13.4 fils per share on net profit of KD 16.8 million, an increase of 12.8% and 12.1% respectively over the same period in 2016. Agility EBITDA grew 14% to KD 32.6 million. Revenue increased 10.9% to KD 342.1 million.First-half earnings of 24.9 fils per share and net profit of KD 31.4 million were up 12.1% and 11.6% respectively from first-half 2016. First-half EBITDA was KD 63.4 million, an increase of 15.6%. Revenue for the first half was KD 662.6 million, an increase of 9.1%. The results are in line with the company’s long-term guidance.
Tarek Sultan, Agility Vice Chairman and CEO, said: “Agility’s Infrastructure group was the primary driver of performance in Q2. Our industrial real estate business and aviation services company delivered particularly strong results. Revenue in our logistics business is growing because air and ocean volumes are increasing and contract logistics revenue is expanding, but rate pressure continues to affect profitability.”
| Q2 2017 (Million KD) |
Q2 2016 (Million KD) |
Variance (%) |
H1 2017 (Million KD) |
H2 2016 (Million KD) |
Variance (%) |
|
|---|---|---|---|---|---|---|
| Revenue | 342.1 | 308.5 | 10.9% | 662.6 | 607.3 | 9.1% |
| Net Revenue | 117.8 | 107.4 | 9.6% | 288.6 | 209.5 | 9.1% |
| EBITDA | 32.6 | 28.6 | 14% | 63.4 | 54.8 | 15.6% |
| Net Profit | 16.8 | 15 | 12.1% | 31.4 | 28.1 | 11.6% |
| EPS(fils) | 13.4 | 11.9 | 12.8% | 24.9 | 22.2 | 12.1% |
Agility Global Integrated Logistics (GIL)
Revenue for Agility Global Integrated Logistics (GIL), the company’s core logistics business, grew 9.6% in Q2, to KD 255.2 million. Air and ocean revenue grew, driven by volume growth of 14.7% and 12.9% in air tonnage and ocean TEUs respectively. These growth rates are above market average. Contract logistics revenue also grew, particularly in the Middle East and Asia Pacific, with the improved performance coming from a combination of new and existing warehousing facilities.
Net revenue in Q2 was flat compared to the same period a year ago, primarily due to significant yield degradation in freight forwarding because of capacity constraints and higher market rates. Net revenue margins contracted to 24.9%compared with 27.3% in Q2 2016. EBITDA decreased 5.8% to KD 9.1 million in Q2 for the same reason.
GIL continues to grow by committing to defined solutions, customer segments, sales productivity and efficient trade lane development. In addition, GIL is driving its transformation by building technology that enables efficiencies and boosts productivity for the customer and operations. GIL continues to be strongly focused on managing its costs in a disciplined manner.
Agility’s Infrastructure Companies
Agility’s Infrastructure group EBITDA rose 7.4%, to KD 27.5 million in Q2. Revenue grew 12.1% to KD 89.1 million. Agility Real Estate, National Aviation Services (NAS) and Tristar were the main factors in the group’s growth.
Agility Real Estate increased revenue 11.6% in Q2. It is developing new warehouses across the Arabian Gulf countries and Africa.
Tristar showed healthy revenue growth of 13.5% for the quarter, driven by new shipping contracts and its recent E-ships acquisition.
NAS grew its revenue by 17%. NAS continues to expand its presence in Africa and is performing well in Cote d’Ivoire and growing in Afghanistan.
UPAC revenue grew 6.5% as the company focused on its income-generating projects in Kuwait, where it manages commercial space at the Kuwait International Airport, Sheikh Saad Terminal, and Discovery Mall.
Recap of Agility Q2 Financial Performance
• Agility’s net profit increased 12.1% to KD 16.8 million in Q2 2017. EPS was 13.4 fils vs.11.9 fils a year earlier.
• EBITDA increased 14% to KD 32.6 million.
• Q2 revenue rose 10.9%, to KD 342.1 million and net revenue increased by 9.6%.
• GIL revenue grew 9.6% while EBITDA fell 5.8% (4.5% on a constant currency).
• Infrastructure’s revenue grew 12.1% to KD 89.1 million, compared with Q2 2016.
• Agility enjoys a healthy balance sheet with KD 1.6 billion in assets. Net debt position was KD 109 million as of June 30, 2017. Operating cash flow was (KD 4.3) million for the first half of 2017, due to the global settlement of the U.S. government food-supply contracts.
Summary
To achieve its 2020 EBITDA target of $800 million, Agility has two areas of focus. First, it is investing in its Infrastructure businesses in emerging markets. Second, it is continuing to improve the underlying fundamentals of its commercial logistics business, particularly in technology-driven transformation of its processes and development of online solutions for customers.
Sultan said continued earnings growth will be driven by operations and by a reduction in legal fees that we anticipate as a result of the settlement of the U.S. case. The impact of lower legal fees will be partially reflected in Q3 before realizing the full impact starting Q4, he said.
“Investments in Infrastructure businesses will limit free cash flow,” Sultan said. “The company is moving toward a ring-fenced net debt position to finance these investments in the future.”
Becomes first to meet highest standards for sensitive pharma and biotech shipments
BASEL, Switzerland – September 28, 2017 – Agility, a leading global logistics provider, is the first freight forwarder to receive QEP expert° accreditation from Envirotainer for its cold chain management of pharma and life sciences products.
Envirotainer is the world leader in temperature-controlled air transportation containers for the pharmaceutical industry. The company’s Qualified Envirotainer Provider (QEP) program evaluates freight forwarders and airline stations and recognizes those able to meet the highest standards for Envirotainer shipments.
The QEP expert° accreditation applies to Agility’s operations at the EuroAirport in Basel, Switzerland, where Agility runs a Pharma Competence Centre (PCC) that manages global, temperature-controlled transportation as well as cold chain solutions for pharmaceutical products. The PCC handles more than 20,000 temperature-controlled shipments per year.
“Pharmaceutical logistics is complex, and there isn’t a one-size-fits-all approach for customers. As a result, we work with our suppliers to maintain the highest level of quality and standards. Being the first freight forwarder to receive the expert° certification from Envirotainer is proof of these efforts,” said Eric ten Kate, Global Vice President, Life Sciences at Agility.
To achieve QEP expert° recognition, a QEP-accredited provider must have a Good Distribution Practices (GDP) certification along with dedicated +15°C to +25°C pharma storage, and manage at least 15 Envirotainer containers per month.
Chris Fore, Compliance Manager at Envirotainer, said: “On its ten-year anniversary, QEP started recognizing stations at either basic°, advanced° or expert° level. QEP expert° is only for those having the highest level of training and quality, along with the physical capabilities and extensive experience handling pharmaceutical products. I do not see many more forwarders meeting such strict criteria.”
Record number of entries offer riveting images and capture the rapid pace of change
Technology category and grand prize winner: Stephen Simiyu, Kenya.
JUNA, UGANDA (Source of the Nile River): For more than 20 years. Mr. Atika’s fishing business on Lake Victoria has helped him provide his family with a comfortable life. Now they have joined the global digital world.
Industry category winner: Esdore Hakizimana, Rwanda.
This solar power industry, situated in the 20 miles east Kigali, Rwanda, has a capacity of 10 megawatts. The energy it produces powers nearly 1500 homes. The solar farm has had a large impact on the people of Rwanda.
Cities category winner: Henry Oliver Hakulandaba, Zimbabwe
Western side of Harare CBD, just after rush hour
About Agility
Agility brings efficiency to supply chains in some of the globe’s most challenging environments, offering unmatched personal service, a global footprint and customized capabilities in developed and developing economies alike. Agility is one of the world’s leading providers of integrated logistics. It is a publicly traded company with more than $4.1 billion in revenue and more than 22,000 employees in over 500 offices across 100 countries. Agility’s core commercial business, Global Integrated Logistics (GIL), provides supply chain solutions to meet traditional and complex customer needs. GIL offers air, ocean and road freight forwarding, warehousing, distribution, and specialized services in project logistics, fairs and events, and chemicals. Agility’s Infrastructure group of companies manages industrial real estate and offers logistics-related services, including e-government customs optimization and consulting, waste management and recycling, aviation and ground-handling services, support to governments and ministries of defense, remote infrastructure and life support.
Across Africa, Agility is developing a network of international-standard distribution parks to provide warehousing, reliable infrastructure and secure environments that offer consistent power and connectivity. Agility’s experience in emerging markets enables it to move cargo from anywhere in the world to any destination safely, on time and on budget for consumer goods makers, energy and mining companies, and other customers. In addition to logistics solutions, Agility also develops and manages fuel infrastructure and distribution, airport services and ground handling, remote site camps and catering, and customs modernization solutions across Africa.
- For more information about Agility, visit agility.com
- Twitter: twitter.com/agility
- LinkedIn: linkedin.com/company/agility
- YouTube: youtube.com/user/agilitycorp
- Instagram: @africaphotocomp, instagram.com/africaphotocomp