Munshaat in $325m debt-for-equity swap

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Munshaat Real Estate has announced that it has agreed a deal with debtors to exchange debts worth $325m (KWD: 91.5m) in exchange for a stake in one of its projects.

The Kuwait-based company, whose shares were one of the biggest gainers in a ranking of GCC construction stocks to be published in the next edition of Construction Week, is currently building a number of major projects in Saudi Arabia.

These include the Dar Al Qiblah project in Madinah - a complex of five buildings including a a pair of towers containing hotels and apartments with 972 rooms and space for 270 shops.

It is also building the 22-storey Bakka tower as part of the Alsafwa project in Makkah.

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Munshaat's shares climbed by more than 160% in 2012 and rallied yesterday after its latest deal was announced to 70 Kuwaiti dinars, giving it a market capitalisation of around $80m.

The firm's two biggest investors are Sokouk Holding Co (which owns a 27.67% stake) and Aref Investment (25.17%).

Meanwhile, Kuwait-based financier International Finance Company announced yesterday that it had sold a stake worth 36.75% in First Tower Ltd in Saudi Arabia for just over $24m (SAR: 90m).