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AL-MAZAYA HOLDING COMPANY - K.S.C. (PUBLIC)
AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2023
(All amounts are in Kuwaiti Dinars)

Net realizable value for properties held for trading is based on valuations performed by independent valuers in
compliance with the Executive Regulations of Capital Markets Authority regarding the valuation of real estate properties.

Properties held for trading mainly comprise of the following:

2023 2022
Developed properties 11,223,531 3,941,112

Certain properties held for trading amounting to KD 2,297,953 (2022 – KD 2,957,124) are pledged as collateral against
Islamic bank facilities (Note 13).

6. Assets and liabilities classified as held for sale and Discontinued operations
A) Assets and liabilities classified as held for sale
During the year ended December 31, 2021, the Board of Directors of a subsidiary to the Group (First Dubai Real
Estate Development Company K.S.C. (public)) approved the disposal of all the shares of Kuwaiti Saudi Real Estate
Investment Company – O.P.C. (subsidiary to First Dubai Real Estate Development Company K.S.C. (public))
(subsidiary)) against cash and in kind consideration with a net amount of 15,500,000 Kuwaiti dinars .The assets
and liabilities attributable to the subsidiary have been classified as a disposal group held for sale and are presented
separately in the statement of financial position.

Subsequently, and during the year ended December 31, 2022, that transaction was partially executed by
transferring part of the in-kind consideration to First Dubai Real Estate Development Company - K.S.C. (Public)
(subsidiary) by transferring investment properties amounting to KD 10,125,000 along with an attached mortgage
in favor of a local bank for an amount of KD 6,000,000, which was included within the Islamic bank facilities of the
Group in addition to a partial payment of the cash consideration in the amount of KD 450,000 that had resulted in
an obligation of KD 4,575,000 which was recorded under the Accounts payable and other credit balances till the
completion of the remaining transaction terms by both parties and recording the full financial impact in the
consolidated financial statements at that time.

During the year ended December 31, 2023, the parties signed a termination and settlement agreement for this
transaction due to the second party’s (the buyer) inability to fulfill his remaining obligations to complete the deal,
which led the parties to terminate the deal and agree on a final settlement which includes the buyer’s undertaking
to assume a bank debt amounting to KD 4,000,000 relating to the properties previously transferred to First Dubai
Real Estate Development Company - K.S.C. (Public) (subsidiary), in addition to the payment of KD 150,000 to the
Subsidiary within one year period from signing the termination and settlement agreement as a final settlement
between the parties. On the other hand, the Subsidiary shall retransfer back to the buyer the ownership of the
properties subject to that settlement which were previously transferred to it within the terms of this transaction.

The termination of that transaction had resulted in the reclassification of the assets classified as held for sale and
their related liabilities back to the Group’s assets and liabilities, as well as reclassifying the results of operations
pertaining to Kuwaiti Saudi Real Estate Investment Company - O.P.C. within the continuing operations till the
completion of the termination and settlement procedures between the parties. As of December 31, 2023, The
Subsidiary had re-transferred the ownership of one of the properties subject to that settlement back to the buyer as
part of the termination and settlement procedures. That transfer had resulted in a partial gain from the termination
of that sale transaction amounting to KD 400,000 which had been recognized in the consolidated statement of profit
or loss for the year ended December 31, 2023.

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