Mubasher: Kuwait Business Town Real Estate has purchased a commercial property at a value of KWD 11.8 million ($39.9 million) through signing a five-year credit facility contract with a local bank.

The credit facility contract is valued at KWD 8.3 million ($27.4 million), according to a bourse disclosure on Monday.

Business Town noted that the profit margin of the credit facilities contract stands at 1% annually above the price discount announced by the Central Bank of Kuwait (CBK).

An amount of KWD 3.5 million has been paid in advance, the company said, adding that this investment comes as part of Business Town’s strategic expansion plans.

This investment is classified as an asset, therefore, the real estate investment account in Business Town will rise by KWD 11.8 million.

Business Town’s liabilities are expected to increase by KWD 8.30 million.

At the stock level, Business Town closed Monday’s session 1.51% higher at 47 fils.