Notes to The Consolidated Financial Statement
AL MAZAYA HOLDING COMPANY K.S.C. AND ITS SUBSIDIARIES
31 December 2012
41
9. INVESTMENT IN JOINT VENTURES
The Group further holds 50% ownership inVilla 492 – Project (theVilla) that is accounted using proportionate consolidation
method.
(i) During the year ended 31 December 2012, the Parent Company and it’s joint venture partner Caledonian Developments
Company Limited entered into a Partnership Dissolution Agreement to distribute the existing assets and liabilities of their
joint venture ‘Al Madar Gulf Limited’ (Al Madar) among themselves. Al Madar was initially established for the purpose of
developing certain properties in Dubai and was classified as a joint venture. As a result of the distribution of the assets and
liabilities of Al Madar, the Group has obtained assets amounting to KD 3,787,463 comprising of cash, properties held for
trading, investment property and liabilities amounting to KD 2,011,409 comprising of advances from customers and other
liabilities. The Parent Company recorded a net loss of KD 242,833 based on the net assets received as compared to the
carrying value of Al Madar and is included in the share of results for the year.
(ii) During the year the Parent Company entered into an agreement with one of its partners, Al Nafisi National Real Estate
Group K.S.C.(Closed) (NNRG), to distribute certain assets of it’s joint venture (JVs) Al Wahda Real Estate Investment Limited
(Al Wahda). The Group’s share in asset distributed amounted to KD 4,343,681, comprising of properties held for trading
amounting to KD 431,471 and the balance amount was received in cash subsequent to 31 December 2012 (after netting
of other balances related to the JV). The distribution of assets was effected based on the fair value of properties held for
trading as on the date of the contract determined by an independent valuer.
(iii) As per another agreement, the Parent Company took over more assets from Al Wahda JV than its proportionate share
and contributed the excess value in cash to the Al Wahda.
(iv) During the year the Parent Company entered into an agreement with its partner NNRG to distribute certain assets of it’s
joint venture Villa – 492 Project (the Villa). The Group’s share in asset distributed amounted to KD 5,059,535, comprising
of properties held for trading amounting to KD 1,300,746 and the balance amount was received in cash subsequent to 31
December 2012 (after netting of other balances related to the JV). The distribution of assets was effected based on the fair
value of properties held for trading as on the date of the contract determined by an independent valuer.
(iv)The Parent Company has further acquired 2% equity shares in Al Wahda from another partner for a consideration of
KD 174,054.
UAE
UAE
49.99
50
49.99
48
Country of
incorporation
2012
2011
Al Madar Gulf Limited 9(i)
Al Wahda Real Estate Investment
Limited 9 (ii)
-
4,548,739
4,548,739
2,018,887
1,203,030
3,221,917
2012
KD
2011
KD
Ownership percentage %
Carrying value
