Abyaar Continues to Implement its Projects Successfully

The Chairman of Abyaar Real Estate Development Company Marzooq Al-Rashdan announced that Abyaar succeeded during 2014 to repay 15.3 million Kuwaiti dinars worth of debts. This in return lowered the Islamic finance creditors from 60.96 million Kuwaiti dinars in 2013 to 45.6 million Kuwaiti dinars in 2014. Abyaar also succeeded in signing agreements to reschedule its 28 million Kuwaiti dinars worth of financial obligations with a number of GCC and local banks. In order to extend the payment periods over 3 to 10 years.

During the company’s General Assembly Meeting which was held yesterday, with number of attendees that reached 79.04% Al-Rashdan expressed that the current efforts of the company are concentrated towards delivering projects to the clients within the time limit.

Al-Rashdan then added: “Hilliana residential tower is in its final phases and its expected to be delivered in the third quarter of this year. Also, the new contractor agreement has been sealed. Where the contractor will start implementing the second phase of Olgana residential tower; that is located in Acacia Avenues. Moreover, we managed to deliver 95% of Acacia Villas; comprises of 50 villas. Furthermore, we were able to finalize the 7 Villas project which is part of the new expansion for Acacia Avenues Project.”

2014 Accomplishments:

In his speech to the General Assembly, The Chairman of Abyaar Real Estate Development Company Marzooq Al-Rashdan stated that the company was keen on meeting its 2013 pledges.

Al-Rashdan then elaborated; presenting the most significant achievements of Abyaar during 2014.

The Company's Achievements in its various Real Estate Projects:

• Acacia Villas: Abyaar Real Estate Development Company has fulfilled its promises with regard to this project. Where the second phase was completed and the third phase has reached its end, in which the completion rate amounted to 100%. And the company has managed to deliver 95% of Acacia Villas; that comprises of 50 villas.

 

• Hilliana Residential Tower: During 2013 Abyaar Real Estate Development Company has provided a due date for the hand-over of the project. In which the company promised that it will be during the second and third quarter of 2015. Abyaar is committed to its pledge to deliver the project within the time limit given; during the current year of 2015.

 

• 7 Villas Project: Abyaar Real Estate Development Company has kept its promise to finalize the project in the fourth quarter of 2014. Where the project of 7 villas was sold and delivered entirely.

 

• Olgana Residential Tower: Abyaar initiated the concrete phase of the project in 2014, and the construction work of the ground floor and M2 was completed successfully. Currently the work is under process for the M3, and afterwards the construction work will start on the identical storeys of the tower.

The Company's Debts:

Regarding the financial obligations of the company, Abyaar has been committed to a restructuring plan during the fiscal year 2014. Where the company has undertaken several cash and in-kind financial settlements amounted to 28 million Kuwaiti Dinars, with a number of local and Gulf banks. The total debts amounted to 60.96 million Kuwaiti dinars has been reduced to 45.6 million Kuwaiti dinars, with an amount of 15.36 million Kuwaiti dinars. Furthermore, the current assets of the company will be able to cover the value of its current liabilities. This in return is a strong, positive indication of Abyaar’s recovery from the effect of the previous financial crisis.

The Shareholders Equity:

During 2014 Abyaar managed successfully to generate a profit amounted by 755 088 Kuwaiti dinars, with earnings per share amounted to 0.69 fils. Compared to a financial losses for the fiscal year of 2013 amounted by 4.9 million dinars, and a loss of 4.5 fils per share. Moreover, The Company succeeded in raising its Shareholders Equity by 4.7% (4.2 million Kuwaiti dinars) in which it amounted to 94.1 million Kuwaiti dinars by the end of 2014.  Compared with 89.9 million Kuwaiti dinars by the end of 2013. This in return increased the book value per share from 81.8 fils in 2013 to 85.6 fils in 2014.

Also, it’s noteworthy that in the end of 2014 the value of Abyaar’s assets was amounted to 33.6 million Kuwaiti dinars. Where the assets of the company can cover the value of its liabilities; that’s amounted to 32.3 million Kuwaiti dinars, with a ratio of 1.04 current assets to 1 current liabilities. Which means that the company during 2014, and for the first time since 2006, successfully reduced the short-term obligations and made them less than the short-term assets.

General Assembly:

The General Assembly ratified all the clauses listed on the agenda, including the non-distribution of dividends to shareholders for the fiscal year ended in 12.31.2014. The assembly agreed not to grant the Board of Directors any financial rewards for the fiscal year ended in 12.31.2014. Also, the Board of Directors was authorized to deal with related parties.

The Assembly also agreed to authorize the Board of Directors to purchase or sell shares of the company, as not to exceed 10% of the shares. This clause is implemented in accordance to article 175, of Law No. 25 from 2012. And as per the instructions of Capital Markets Authority concerning the organization of the procurement process of treasury shares that’s carried out by joint stock companies.