Global Investment House (Global), the Kuwait based investment firm, has entered into an agreement to sell its entire stake in real estate Finance House to Cairo-based Arab African International Bank (AAIB) for KD2.4 million (Dh30.5m).

This transaction translates to a profit of KD200,000, according to a company statement posted on stock exchanges yesterday.

The profit will be reflected on company's book for the first quarter of 2010. The company is expected to use the sale proceeds to repay some of its existing loans.

Meanwhile, Global has narrowed its net loss for the 2009 fiscal to KD148.8m against net loss of KD257.6m in the year ago period.

Company's net loss for the fourth quarter of 2009 stood at KD44.6m compared to Shuaa Capital forecast of KD13m of net loss for the fourth quarter ending December. The company's board has decided not to issue any dividends for 2009 fiscal.

Global's loss narrowed primarily due to less provision to cover its bad assets. The investment bank made KD35.2m impairment provisions in 2009 against provisions of KD153m in 2008.

Global shares gained most in three months after the announcement of the results on the Kuwait Stock Exchanges.

The shares were trading up eight per cent at 108 fils at Kuwait Stock Exchange.

At the same time, Global shares dip 3.3 per cent to Dh1.43 at the Dubai stock exchange.

Global defaulted on its loan repayments, is in talks to sell some more of its assets to repay its borrowings. The company has reached agreements with its 53 creditors to restructure its debt.

Global Chairperson and Managing Director Maha K Al Ghunaim is optimistic about 2010 growth for Kuwait's one of the biggest investment firms. In January she said that there would be 'huge improvement' in 2009 results, signaling that the worst is over.

An e-mail sent to GIH for seeking more details on the deal failed to evoke any response till the time of going to print.

The Bank of New York International and the Bank of New York Limited owns 11.43 per cent shares and 7.20 per cent shares respectively while Public Institution for Social Security of Kuwait holds 9.10 per cent stake and Dubai Capital Group owns 7.02 per cent stake as on March 7, 2010 according to Global website.

Global is listed on the Kuwait, Dubai, Bahrain and London stock exchanges.