Kuwait's Abyaar to reschedule debt, book provisions

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GRIM TIMES: Abyaar plans to go ahead with a $1bn real estate project in Egypt. (Getty Images - for illustrative purposes only)

Kuwait's Abyaar Real Estate Development Co is aiming to reschedule debt and receive new loans of $136m as it considers provisions to cope with a worsening property market, a top official said.

Vice-president Marzouk Al Rashdan told Reuters Abyaar would go ahead with a $1 billion real estate project in Egypt and is currently only investing 600 million riyals ($160 million) in Saudi Arabia after having earlier planned investments of up to 9 billion riyals until 2010.

"We are rescheduling our loans...we need 40 million dinars ($136.5 million) in total for our short-term finance," he said late on Tuesday, adding it was in talks with local banks.

Rashdan declined to give a profit forecast for 2008 and 2009, saying only the real estate firm could book an unspecified amount in provisions for last year which would be the first time for the company.

"2008 is an opportunity to take provisions, we have to be cautious with the profits," he said, adding that Gulf real estate sector would see tougher times this year than last year. (Reuters)

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READERS' COMMENTS

Pier 8, Dubai Marina
Posted by PP, Dubai, UAE on Wednesday 18 February 2009 at 15:02 UAE time


Maybe the current cashflow & debt refinancing issues explains why they have ceased work on their Pier 8 development in Dubai Marina. This is just one of the towers that are half built in this area of Dubai that look like they have been mothballed, for now at least.

It would be interesting to understand what recourse investors have w.r.t. delays to the delivery of this particular tower - i guess a heap of money has already been paid to te developer for a half finished buidling.

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