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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)

a) During the year ended December 31, 2022, the Group transferred net right of use real estate assets amounting KD
62,115 from investment properties to property, plant and equipment, as these properties are used in the activity by
one of the subsidiaries (Note 9).

Depreciation charge has been allocated as follows:

2023 2022
Cost of medical services 128,733 125,466
Depreciation in consolidated statement of profit or loss 213,003 181,959
341,736 307,425

9. Investment properties
2023 2022
Balance at the beginning of the year 159,901,075 145,928,412
Additions (a) 14,654,339 26,370,305
Net transfer to property, plant and equipment (Note 8) - (62,115)
Disposals (b) (45,231,074) (2,144,286)
Net reclassification from / to assets classified as held for sale 10,084,766 -
Change in fair value (2,850,156) (11,754,651)
Effect of hyperinflation on a subsidiary - 2,367,051
Foreign currency translation adjustments (1,562,109) (803,641)
Balance at the end of the year 134,996,841 159,901,075

Investment properties mainly compromise the following:

2023 2022
Land 9,867,901 29,765,450
Developed properties 91,678,340 100,860,786
Rights of use real estate assets 33,450,600 29,274,839
134,996,841 159,901,075

a) During the year ended December 31, 2023, the Group had executed a swap deal for land plots owned by its
subsidiaries in the United Arab Emirates with the master developer amounting to KD 16,600,732 (included in
“disposals” caption) in exchange for other land plots amounting to KD 8,610,901 (included in "additions" caption),
in addition to the rights to purchase other land plots that were recognized initially as “Advances to purchase
properties” amounting to KD 8,260,020 which were subsequently exchanged for other properties in United Arab
Emirates (Note 5).

Also, the Group had new “Rights to Use Real Estate Assets” during the year with total amount of KD 5,437,161
which had been recognized against its related lease liability (Note 12).

b) Disposals include the re-transfer of the ownership for a property related to the termination and settlement of the
sale transaction of one of the Group’s subsidiaries to second party (buyer) amounting to KD 350,000 (Note 6).

The Group has complied with the Executive Regulations of Capital Markets Authority regarding the valuation of
investment properties. Valuation of investment properties was conducted by independent appraisers with recognized
and relevant professional qualification using recognized valuation techniques and principles.

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