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AL-MAZAYA HOLDING COMPANY - K.S.C. (PUBLIC)
AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2023
(All amounts are in Kuwaiti Dinar)

6. Properties held for trading
Movement on properties held for trading is as follows:
June 30, December 31,
2023 2022 June 30,
(Audited) (Audited) 2022
Balance at the beginning of the period / year 3,941,112 6,228,182 6,228,182
Additions - 68,850 68,487
Disposals (279,268) (1,986,638) (469,284)
Reversal of (impairment loss) on properties held for
trading 28,149 (450,457) -
Foreign currency translation adjustments 3,076 81,175 82,787
Balance at the end of the period / year 3,693,069 3,941,112 5,910,172

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:

June 30, December 31,
2023 2022 June 30,
(Audited) (Audited) 2022
Developed properties 3,693,069 3,941,112 5,910,172

Certain properties held for trading amounting to KD 2,956,852 (December 31, 2022 – KD 2,957,124, June 30, 2022 –
KD 4,432,594) are pledged as collateral against Islamic bank facilities (Note 13).

7. Assets classified as held for sale and discontinued operations
(a) Assets classified as held for sale:

Net assets and liabilities held for sale are as follows:
June 30, December 31,
2023 2022 June 30,
(Audited) (Audited) 2022
Kuwaiti Saudi Real Estate Investment
Company – O.P.C. 14,949,083 14,906,477 15,375,477

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.

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 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.

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