National Real Estate Company is exiting a two-decade investment in Mediterranean Investment Holding, agreeing to sell its entire 50 per cent stake for €74 million, or about $87 million, in a move the Kuwait-listed group says will cut debt and sharpen its capital allocation. The disposal, disclosed on 13 April and due for completion by 30 June 2026, hands full ownership of the Malta-registered company to existing partners CPHCL Company Limited and International Hotel Investments p. l. c. The seller is Kuwaiti National Investment Holding Ltd, a subsidiary tied to National Real Estate Company, while the buyers are splitting the acquisition evenly. CPHCL will buy 25 per cent of MIH for €37 million and increase its holding to 75 per cent, while International Hotel Investments will acquire the other 25 per cent for €37 million, ending the long-standing 50-50 structure that had defined MIH’s ownership. MIH said the deal is conditional, with an advance payment set at 10 per cent of the aggregate consideration.
For National Real Estate, the sale is more than a portfolio adjustment. The company said it expects to record a gain of about KD6.16 million in its 2026 financial results, although it stressed that the gain is mainly an accounting effect arising from the reclassification of reserves and will not alter total equity or the broader financial position. Management has framed the transaction as part of a wider effort to improve capital efficiency, lower financing costs and free up resources for projects carrying stronger strategic returns.
The company has reason to emphasise balance-sheet discipline. National Real Estate reported a fourth-quarter loss of 27.2 million dinars at the end of March, underlining the pressure facing regional property groups as they navigate volatile valuations, financing costs and uneven demand across markets. Against that backdrop, a cash-generating exit from a mature overseas holding offers immediate liquidity and a clearer story for investors assessing how management intends to recycle capital.
National Real Estate said the investment has produced a strong return since its entry in 2006. According to the company, it invested €24 million at inception and, after including dividends received over the life of the holding, will have realised total cash of €94 million, nearly four times the original outlay. That gives the disposal an added significance: it allows the company to present the transaction not as a forced retreat, but as a monetisation of a successful long-term position at a time when investors are rewarding focus and liquidity.
The asset at the centre of the deal is MIH, a Malta-registered listed company whose main value lies in Palm City Residences in Janzour, near Tripoli. Financial disclosures from MIH show Palm City accounted for 85.69 per cent of the group’s asset base at the end of 2024, with a carrying value of about €272.6 million. Corinthia Group, which is linked to the buyers, describes the development as a large gated residential complex used by international companies, diplomats and long-term residents operating in Libya.
That Libyan exposure helps explain both the appeal and the complexity of the investment. MIH’s half-year report for 2025 showed profit before tax rising 25 per cent year on year to €10 million, with average occupancy at Palm City improving to 64.7 per cent from 60.7 per cent a year earlier. At the same time, MIH acknowledged that temporary clashes in Libya during May 2025 hurt demand and confidence, even though contracted leases remained intact and no force majeure terminations were invoked. The report pointed to cautious improvement, driven in large part by enquiries from the oil and gas sector and the diplomatic community.
For the buyers, taking full control consolidates exposure to an asset they already know well. CPHCL and IHI have cast the purchase as a vote of confidence in MIH’s assets, people and long-term prospects. For National Real Estate, the logic runs in the opposite direction: the company is exiting a geographically and politically complicated holding and redirecting capital towards opportunities closer to its current priorities. That divergence is typical of cross-border real estate portfolios in 2026, when developers and investment firms are reassessing where scale, control and funding flexibility matter most.
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