'Carina Views' Deal Marks Latest Step in Asset Divestment Program
The National Real Estate Company makes progress in selling its stake in Carina Views in Abu Dhabi, with expectations of realizing profits and improving financial flexibility.
Translated by Qiyas from النهار — Original source
Kuwait National Real Estate Company (NREC) announced that it is continuing to make progress in implementing its strategy to optimize its portfolio, following a strategic review conducted by the Board of Directors and the executive management team aimed at restructuring the portfolio and enhancing financial flexibility. Proceeds from the asset divestment program, including the “Carina Views” deal and other recently completed transactions, are expected to reach approximately 70 million Kuwaiti dinars upon completion of the Carina Views transaction.
The latest deal involves Carina Views Real Estate Development LLC, which owns two land plots with a total area of 13,001 square meters on Al Reem Island in Abu Dhabi. The contractual sale value is 400 million UAE dirhams (equivalent to approximately 33.4 million Kuwaiti dinars), with the possibility of total proceeds reaching 470 million UAE dirhams (equivalent to approximately 39.2 million Kuwaiti dinars), subject to agreed conditions.
Financial Impact and Deal Structure
At the first closing, the buyer provided a certified check worth 200 million UAE dirhams (equivalent to approximately 16.7 million Kuwaiti dinars) in exchange for a 50% stake in Carina Views. The buyer is committed to paying an additional 120 million UAE dirhams four months after the first closing in exchange for an additional 30% stake, with payment secured by a post-dated check payable on the agreed date. NREC will retain a 20% stake in Carina Views, along with two seats on the board of directors and a put option exercisable within 12 months from the date of the second closing.
If the put option is not exercised, NREC will retain priority rights in distributions up to 150 million UAE dirhams, followed by its entitlement to 20% of future dividend distributions. NREC expects to record a profit of approximately 8.2 million Kuwaiti dinars from this transaction in its income statement during the third quarter of 2026, with the possibility of recording additional profits in the future depending on the decision regarding the exercise of the put option. Upon full completion of the transaction, the company expects net debt to fall below 100 million Kuwaiti dinars.
Capital Allocation
The Carina Views deal is part of NREC’s asset divestment program aimed at optimizing its investment portfolio, enhancing financial flexibility, and focusing on value-creation opportunities. The Board of Directors will continue to evaluate capital allocation options, including potential investment in housing projects in Kuwait and the possibility of dividend distributions, subject to the necessary approvals from the Board of Directors and the General Assembly, as appropriate.
Faisal Al-Enezi, Vice Chairman and Chief Executive Officer, stated: “The Carina Views transaction represents a significant milestone in the implementation of NREC’s strategy to optimize its investment portfolio. Through the asset divestment program, we are strengthening our financial flexibility and positioning the company for growth and value creation for shareholders. We will continue to evaluate capital allocation opportunities with discipline, including potential investment in housing projects in Kuwait and the possibility of dividend distributions, subject to obtaining the necessary approvals.”
