12 May 2008
Leasing Agreement Between Salhia & National Bank of Kuwait
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In line with the continuous cooperation and partnership between Salhia Real Estate Company (Salhia) and National Bank of Kuwait (NBK), Mr. Ghazi Fahed Alnafisi, Chairman and Managing Director of Salhia, announced the letting of 34 floors of Arraya Tower to NBK. Arraya Tower, owned and currently under development by Salhia, is the second phase of Arraya Centre in Kuwait City, and will comprise 36,000 m2 of office space spread over a 58 storey office tower.
Mr. Alnafisi also expressed his delight at the letting to NBK, and felt that the tenant of this caliber will solidify Arraya Tower’s position in the market.

In addition, Mr. Issam Jassim Al-Saqer, Chief Executive Officer of NBK, expressed his pleasure in signing the lease agreement with Salhia. Mr. Al-Saqer pointed to NBK’s pride in the long standing relationship with Salhia, which is considered one of the leading real estate companies’ in the country. Mr. Al-Saqer believes Arraya’s new tower will be a vital feature of Kuwait City’s landscape.
Mr. Al-Saqer confirmed that, this agreement comes within the framework of the continued expansion of the bank in providing the best banking and financial services to its clients. The bank continues to spread through a network of local branches, currently 65 in Kuwait, to meet the various needs of the bank’s clients on different levels.

Mr. Al-Saqer also hoped for the continued cooperation with Salhia and to further strengthen their relationships in the future.
Furthermore, Mr. Alnafisi revealed that the new Arraya Tower reached the final stages of construction, and it is expected to be completed in the first quarter of 2009. The tower will rise to 300m, making it the highest building in Kuwait upon completion.
The building is located in Sharq Area, Alshuhada Street in Kuwait City, and has 58 floors served by 16 elevators with a rental space of 36,000 m2. It is distinguished by its open plan floor plates, modern design, equipped with the latest modern technology. The floor plates vary between 520 m2 and 740 m2 with a total project cost KD 32,000,000/- (Only Thirty Two Million Kuwaiti Dinars).
For

05 February 2008
Salhia Completes Sale of Fahad Al Salem Land
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Salhia Real Estate Company today has completed the sale of eight plots a total area of 3,0605.5 m2, situated in Fahad Al Salem Street, for a total value of K.D. 36,055,000. The company will realize from this transaction a profit of K.D. 25,143,123, giving a profit per share of 70 Fils

As the contracts over this sale were exchanged on 1/7/2007 the profits will be recorded within the income statement for the fiscal year that ended on 31/12/2007.

04 February 2008
Salhia increases holdings in The International Investor
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Salhia Real Estate Company has today announced that it has increased its shareholding in The International Investor (TII), a Kuwaiti shareholding company to 6.228% of the company’s paid-up capital. The purchase was done via a fund managed by Al Tharwa Investments on the 5th of February, 2008.

Salhia perceives this investment as a long-term and strategic in nature. Furthermore, this holding will allow for a closer and more interactive working relationship between both companies.

TII is a Kuwaiti shareholding company, established in 1992 by institutional and private investors, with shareholders’ equity of US$ 72 million. The Company was listed on the Kuwait Stock Exchange in 1996, and subsequently on the Bahrain Stock Exchange.

TII initially focused on providing entrepreneurs, corporations, asset managers and distributors of financial services with the expertise, knowledge and tools to efficiently access the fast-expanding Islamic market. In just a few years, TII has emerged as one of the leading investment banks in the Gulf region, and the world’s leading wholesale Islamic investment bank.
In recent years TII has embarked upon an evolution from the traditional specialization in investment banking into a broad-based regional financial services company. It is believed that the non-bank financial services industry in the MENA region offers exceptional potential for growth and expansion.

27 January 2008
Salhia Launches New Corporate Identity
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Salhia Real Estate Company today announced the launch of its new corporate identity. At home and abroad, Salhia is a name synonymous with the creation, ownership and management of fine commercial property investments.

Established in 1974, Salhia has grown to become a major player in Kuwait’s booming real estate sector. The domestic portfolio is complemented by international investments that include three commercial centres and 20 properties in the United Kingdom, as well as 17 homes for the elderly in Northern Germany.

The striking new corporate identity is designed to reflect the essential facets of Salhia’s business: six core sectors focused on retail & leisure, offices, hotels, residential, industrial & logistics and senior care. The new logo’s symbol is based on a three-dimensional, translucent ‘S’, and the classical elements of the logo’s English and Arabic typography and colour palette reinforce Salhia’s reputation as reliable, professional and knowledgeable.

Mr. Ghazi Fahad Alnafisi, Salhia’s Chairman and Managing Director, commented:
“I am delighted to reveal our new corporate identity that heralds Salhia’s next exciting growth phase. The future will see us enter new markets and further expand our activities to encompass a broader range of real estate based investment products. As the company grows, we will always retain sharp focus on serving the interests of key stakeholders – our tenants, customers, staff and shareholders.”

Today will also see Salhia launch its new corporate website, providing detailed information on the company’s, history, philosophy, management team and projects. To find out more, refer to www.salhia.com.

ABOUT SAHLIA

Salhia Real Estate Company KSC is a Kuwaiti real estate and investment company engaged in retail & leisure, offices, hotels, residential, industrial & logistics and senior care.

The company owns, develops and manages commercial properties and hotels in Kuwait (such as Salhia Commercial Complex, Arraya Commercial Centre and Marriott Hotels).

Internationally, the company is involved in nursing homecare in Germany through its subsidiaries Haddia Holding GmbH and Dana GmbH. In the United Kingdom, the company has a 50:50 joint venture with St. Modwen Properties, Key Property Investments (KPI), and owns Drawbridge Securities Limited, which deals in property development options.

26 November 2007
Salhia Real Estate Company to Develop $125 Million Commercial & Retail Tower in Bahrain Bay
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Salhia Real Estate Company (SREC) announced today that it has signed an agreement with Bahrain Bay Development B.S.C.(c), to acquire land and develop a prestige commercial and retail tower with an expected value in excess of $125 million.

Bahrain Bay is a $2.5 billion mixed use development project off the North East coast of Manama in the Kingdom of Bahrain. It will include commercial, residential, retail space and a marina, all set around the Manama waterfront, with the Four Seasons Hotel being the centerpiece.

Salhia’s development will be located within the same district as the Arcapita headquarters, CapitaLand’s Raffles City Bahrain and the recently announced Al Baraka Banking Group headquarters. The development will be 30 storey tower composed of both high end retail and office space and approximately 1000 car parking spaces.

Mr. Ghazi F. Al Nafisi, Salhia’s Chairman & Managing Director, said, “Our investment in Bahrain Bay is an exciting opportunity to be part of creating a place that will help define Bahrain for years to come. Bahrain Bay will undoubtedly become one of the region’s landmark developments, shaped by its unique and aspiring vision. We intend for our design to reflect the vision of creating a dynamic waterfront community for Manama; a vibrant urban metropolis encapsulated by iconic architecture and waterfront views.”

Bob Vincent, CEO of Bahrain Bay, added, “Bahrain Bay will set a new standard for urban living in the region by creating a modern metropolis that will become the driving force for the re-development of Manama’s city waterfront. For a select group of partners, this goal creates exceptional opportunities. Salhia Real Estate Company is exactly the kind of partner we want to work with as they share our vision of creating a sustainable legacy for the Kingdom of Bahrain. We are delighted to have Mr. Ghazi F. Al Nafisi and his team on board.”

Salhia Real Estate Company K.S.C. established in 1974, is an international Kuwaiti-based company engaged in real estate/investment activities. It owns, develops and manages commercial properties and hotels in Kuwait (such as Salhia Complex, Arraya Centre and Marriott Hotels). Internationally, the company is involved in Nursing Homecare in Germany through its subsidiaries Haddia Holding GmbH and Dana GmbH. In the United Kingdom, the company has a 50:50 Joint Venture with St. Modwen Properties via Key Property Investments (KPI). Also, the company owns 50% of Drawbridge Securities Limited, which deals in property development options in theUK.

08 October 2007
St Modwen Plans Trafford Park Blitz at Avro Park
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KPI Properties, the joint venture partnership between St Modwen Properties PLC and Salhia Real Estate Co, has submitted a detailed planning application for 162,000 sq.ft of office and light industrial accommodation on its 10-acre site in Trafford Park, Manchester. The site immediately adjoins the 360,000 sq ft warehouse and UK headquarters currently being developed by KPI for Adidas.

The new development, to be called Avro Park, will comprise 70,000 sq.ft of front door offices and 92,000 sq.ft of light industrial space set within a well landscaped environment including over 350 new trees. The site fronts Mosley Road and is immediately adjoining the Bridgewater Canal.

Avro Park will be built speculatively in two phases and the first units will be ready for occupation from next summer. The adjoining adidas facility is scheduled to be operational next Spring.

Paul Batho, of St Modwen, commented: ³Trafford Park has consistently proved to be a vibrant market for employment space, increasingly offices. Avro Park will provide a new stream of business accommodation in the heart of the area.

³It has an excellent location adjacent to adidas¹ new UK headquarters and we are confident that the development will be well received by the market².

The scheme has been named Avro Park to mark the fact that ŒManchester Œ heavy bombers were manufactured on the site by Avro during the Second World War. The Avro Manchester was effectively the predecessor to the more famous Lancaster bomber entering into service in 1940.

King Sturge is advising St Modwen.


Note to Editors:

Key Properties Ltd has agreed to sell the headquarters/distribution building it is developing for adidas to the National Farmers Union Mutual Insurance Society Ltd.
The 360,000 sq ft (33,444 sq m) building will be let on completion to adidas at a rent of £4.75 per sq ft for 15 years.

The site was formerly the home of GEC¹s Hotpoint operation. It was acquired by KPI in a portfolio of Marconi properties and became available for redevelopment after Merloni, Hotpoint¹s succesor vacated the site.

For further information contact Paul Batho of St Modwen (01925 825950).
Issued by Paul Raymer of Howle Chapman Raymer (07958 345328).

Salhia Real Estate Company KSC, established in 1977, is an international Kuwaiti based real estate and investment company engaged in retail & leisure, offices, hotels, residential, industrial & logistics and senior care. The company owns, develops and manages commercial properties and hotels in Kuwait (such as Salhia Complex, Arraya Centre and Marriott Hotels). Internationally, the company is involved in nursing homecare in Germany through its subsidiaries Haddia Holding GmbH and Dana GmbH. In the United Kingdom, the company has a 50:50 joint venture with St. Modwen Properties via Key Property Investments (KPI) and owns 50% of Drawbridge Securities Limited, which deals in property development options in the UK.

05 June 2007
Salhia to commence a major re-development of Farnborough Town Centre in the UK
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Key Property Investments (KPI), a 50/50 joint venture between Salhia Real Estate Company and St. Modwen Proplerties PLC of the U.K., and Rushmoor Borough Council have signed the agreements which give the green light to the long awaited £80 million re-development of Farnborough town centre. Since KPI, the joint venture between St Modwen Properties PLC and Salhia Real Estate Company K.S.C, acquired the Kingsmead and Queensmead sections of the town centre in 1998, KPI and Rushmoor have worked tirelessly to achieve their combined objective of providing Farnborough with a centre for the 21st Century.

Two early phases - Queensgate and the Mead - have already been completed to provide relocation space for traders dislodged by the wider proposals. These two advanced schemes have already given a hint as to how the centre of Farnborough will be transformed by this major development.

The main phases will commence on site in a matter of weeks to provide a wide range of town centre uses, including new shop units, leisure facilities and residential space. Significantly, an impressive line up of major tenants have already committed to the scheme including Sainsbury's, which will be taking a 50,000 sq ft store and VUE Cinemas, which is to operate an eight-screen cinema.

Discussions are advanced with other well known high street retailers who will ensure that Farnborough, for the first time, has a shopping offer which can serve its natural catchment which currently has to travel further than necessary to have its shopping needs met.

This agreement also makes provision for 106 private residential units and 26 affordable housing units.

The scheme is programmed to start with a major demolition contract commencing in three weeks and diversions of principal services. Work on the Sainsbury's store and the 30 new shop units will start before the end of this year. The cinema scheme will act as an additional anchor to the southern end of Queensmead and is to be supported by 25,000 sq ft of bar/restaurant units. The cinema planning application will be submitted in the next two weeks and if planning permission is granted could be on site early next year. The whole project is scheduled to complete in 2009.

KPI was incorporated in May 16th 1997 in UK with a capital of GBP 25 million and scheduled to operate for a period of 8 years. Key Property Investments LTD (KPI), is Salhia Real Estate Company’s UK investment arm. In 2004 KPI’s shareholders decided to increase the capital to GBP 50 million and extend its life another 8 years. KPI specializes in the acquisition, development and trading of various types of UK properties.

Salhia Real Estate Company KSC, established in 1977, is an international Kuwaiti based real estate and investment company engaged in retail & leisure, offices, hotels, residential, industrial & logistics and senior care. The company owns, develops and manages commercial properties and hotels in Kuwait (such as Salhia Complex, Arraya Centre and Marriott Hotels). Internationally, the company is involved in nursing homecare in Germany through its subsidiaries Haddia Holding GmbH and Dana GmbH. In the United Kingdom, the company has a 50:50 joint venture with St. Modwen Properties via Key Property Investments (KPI) and owns 50% of Drawbridge Securities Limited, which deals in property development options in the UK.

23 May 2007
Salhia Real Estate Sells Adidas Investment at Trafford Park, Manchester, United Kingdom
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Salhia Real Estate Company, through Key Property Investment LTD (KPI), its 50/50 U.K. joint venture with St. Modwen Properties plc, has sold the headquarters/distribution building it is developing for Adidas Group at Trafford Park, Manchester, U.K. to the National Farmers Union Mutual Insurance Society Ltd for approximately £33.3 million (KD 19.1 million). The sale was completed on the 16th of April, 2007 yielding a return for KPI of 20.6% on total costs. KPI’s return on equity, for this transaction, amounted to over 59%. Salhia’s share from the net profits of the sale will amount to approximately £1.45 million (KD 830,000).

The 360,000 sq ft (33,444 sq m) building, believed to be the largest single letting in the North West of England so far this year, will be let on completion to Adidas Group at a rent of £4.75 per sq ft for 15 years. The completion of the development is scheduled for November 2007. The property, once completed, will comprise a state of the art, high bay distribution facility providing accommodation totaling some 358,367 sq ft (33,292.3 sq m) including 19,956 sq ft (1,853.9 sq m) of 2 storey high quality office accommodations.

Founded in 1949, the Adidas Group is based in Herzogenaurach, Germany, and employs about 16,300 people. In January 2006, the company closed its acquisition of Reebok International Ltd. providing the new Adidas Group with a footprint of $11.8 billion in the global athletic footwear, apparel and hardware markets.

KPI was incorporated in May 16th 1997 in the UK with a capital of GBP 25 million and scheduled to operate for a period of 8 years. Key Property Investments LTD (KPI) is Salhia Real Estate Company’s UK property investment arm. In 2004 KPI’s shareholders decided to increase the capital to GBP 50 million and extend its life another 8 years. KPI specializes in the acquisition, development and trading of various types of UK properties.

Salhia Real Estate Company K.S.C., established in 1974, is an international Kuwaiti-based company engaged in real estate/investment activities. It owns, develops and manages commercial properties and hotels in Kuwait (such as Salhia Complex, Arraya Centre and Marriott Hotels). Internationally, the company is involved in Nursing Homecare in Germany through its subsidiaries Haddia Holding GmbH and Dana GmbH. In the United Kingdom, the company has a 50:50 Joint Venture with St. Modwen Properties via Key Property Investments (KPI). Also, the company owns 50% of Drawbridge Securities Limited, which deals in property development options in the UK.

05 May 2007
Financial Statements - March 31, 2007
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Mr. Ghazi Fahad Alnafisi, Chairman and Managing Director of Salhia Real Estate Company, has announced that the company ratified in its meeting held on 5/5/2007 the financial statements of the company for the period ended on March 31, 2007. The net profit for this period amounted to slightly over 3 Million Kuwaiti Dinar, i.e. a profit of 9 fils per share, compared to 1 Million Kuwaiti Dinar and 3 fils profit per share for the same period last year, i.e. an increase by 193%. Further, the gross revenues increased from 8 Million Kuwaiti Dinar during the first quarter of 2006 to 10 Million Kuwaiti Dinar, compared with the current year, i.e. an increase by 23%.

Alnafisi explained that the results for the first quarter of 2007 reflected on total assets as well, which increased by 7% from 219 Million Kuwaiti Dinar for the first quarter of 2006 to 235 Million Kuwaiti Dinar for the same period of the current year. The total Owner’s Equity increased by 43% from 100 Million Dinar for the first quarter of 2006 to amount to 143 Million Dinar for the same period during the current year, which increased the book value per share 318 fils for the first quarter of 2006 to amount to 454 fils for the first quarter during the current year.

Alnafisi said the company succeeded in its strategy represented in increasing the company revenues and reducing its debts, hence leading to reducing the company's debt by 30% from 119 Million Kuwaiti Dinar for the first quarter of 2006 to amount to 83 Million Kuwaiti Dinar for the same period during the current year.

Alnafisi uncovered that Salhia Real Estate Company has recognized a big leap in the completion of Arraya Tower project, located in Sharq area and consisting of 60 floors. 33 floors were completed, at the height of 142 meters above the ground surface. Currently, working is underway to complete the entire project by the end of 2008, as planned.

Alnafisi said the company expects to recognize more achievements during the forthcoming period. On the international investments level, Alnafisi indicated that there are several projects in the United Kingdom being accomplished through its affiliate company, Key Property Investments (KPI) and its subsidiary, Drawbridge Secuiriteis Limited (DSL), and in Germany through its subsidiary company, Haddia Holding.

Salhia Real Estate Company KSC, established in 1977, is an international Kuwaiti based real estate and investment company engaged in retail & leisure, offices, hotels, residential, industrial & logistics and senior care. The company owns, develops and manages commercial properties and hotels in Kuwait (such as Salhia Complex, Arraya Centre and Marriott Hotels). Internationally, the company is involved in nursing homecare in Germany through its subsidiaries Haddia Holding GmbH and Dana GmbH. In the United Kingdom, the company has a 50:50 joint venture with St. Modwen Properties via Key Property Investments (KPI) and owns 50% of Drawbridge Securities Limited, which deals in property development options in the UK.