Agility invests in NREC
Agility Public Warehousing Company K.S.C.P (“Agility”), through a subsidiary, has entered into an agreement to invest up to KD 31 million in the National Real Estate Company (NREC).
This investment comes in the form of a 5 year debt instrument whose repayment can either be cash settled or conversion into common stock of NREC at an exercise price of 125fils/share. The conversion to common stock is subject to shareholders and regulatory approvals.
One of the main drivers of this investment is to fund “Reem Mall” Project which is expected to generate healthy returns for Agility’s shareholders. The funds will help bridge the equity gap required to close the bank financing for the project. Furthermore, the investment will give Agility a good exposure to a diversified portfolio of assets which is currently owned by NREC.