KUWAIT CITY, Sept 3: ALARGAN International Real Estate Company today reported on the advancement of its operations as of the end of Q2 2016, showing progress in its commercial developments in Kuwait, which are located in prime areas in the country. The Company also reported on its developments in Bahrain and Oman.
Khaled Al-Meshaan, CEO and Vice-Chairman of the Board of Directors of ALARGAN International Real Estate Company, said: “We are glad to report significant progress in our developments and continued success in our rental and resort projects. Revenue from projects increased to KD 6.3 million in H1 2016, while revenue rental was KD 1.6 million and revenue from the resort business was KD 4.7 million. Our diversified portfolio of revenue generating assets has enabled ALARGAN to maintain a stable level of operational activities since the beginning of the year.”
In Kuwait, ALARGAN owns and manages high-profile resort and commercial developments which generate stable revenues from rents and leasing. These developments include the ARGAN Al-Bida’a commercial area, the Movenpick Bida’a Hotel and Resort and the C Club high-end fitness club.
In addition to these existing developments, the Company is presently developing two commercial projects, the first in Salmiya and the second in the growing retail area of Shuwaikh.
The Salmiya project, ARGAN Square, has reached 85 percent completion. ARGAN Square is a retail and leisure development located in a prime location of Salmiya which targets a dynamic young segment of the population. The project extends over 4,800 square meters, surrounded by Sabah Al-Salem Street and the Gulf Road, and situated directly opposite from the American University of Kuwait. The net leasable area is 5,640 square meters.
The second development will consist of a commercial complex located in the booming retail area of Shuwaikh. Currently in the final stages of design, the project is expected to make a statement and stand out in the area with an open-air design and fountains that break away from the industrial blocks surrounding it. The complex will provide 1,950 square meters of leasable areas. Leasing for the project is targeted to commence in Q4 2016.
In Bahrain, ALARGAN is developing a large project in the Jeyoun Area, a key central residential area in the Kingdom. The area is well served by a road network with direct access to Sheikh Khalifa Bin Salman highway, and it is 15 minutes away from the Bahrain International Airport.
The overall development of Jeyoun is divided into several phases, with construction of the ARGAN Village and Jeyoun Townhouses phases both completed and handed over. The 82 townhouses built over a 12,500 square meters’ area were all sold, and the award-winning mixed-use ARGAN Village has been operational since Q2 2016.
ALARGAN is currently developing the next phase of the project, named Beyout ALARGAN, which will consist of 30 villas covering a net land area of 7,167 square meters. Demand for the villas has been strong, and has been reflected in the early start of sales based on demand.
The Company’s Telal Al Qurum development has progressed significantly. The project is divided into six phases that combine modern and cultural features in its mainly residential development. The project is located in the high-demand area of Al Qurum in Muscat, and has direct access to the arterial road network.
The first of six phases was completed and all residential units were sold. Phase 1 also provides retail leasing opportunities planned to start in September. Phase 2, a residential development, has sold 95 percent of its 121 units. Construction reached 60 percent completion. Construction of Phase 3 of the project has commenced and sale of the 101 residential units has reached 80 percent. Phase 4 has also launched construction and sales. Phases 5 and 6 are at the design stage and will consist of residential buildings and retail leasing areas.
Al Waha is the second flagship mixed-use development located in Al Ne’man area, west of Barka. The fully completed development will comprise of affordable residential units, community facilities such as schools, mosques, parklands, roads and substations, as well as services and amenities. The gross land area will cover 683,859 square meters. Construction of the first phase has reached 96 percent for 112 villas, of which 86 were sold.