Barwa set to launch major expansion projects this year

30/03/2015 06:38 AST

Barwa Real Estate Company expects to start construction work on its Barwa Village expansion and the Alaateda (Barwa Al Doha), Madinat Al Mowatir, and Manateq projects this year.

This was announced by Barwa chairman Salah bin Ghanim al-Ali at the company’s ordinary annual general meeting at the Sheraton Doha yesterday.

Al-Ali said Barwa was “progressing with development” of the two phases of the Barwa Al Baraha project, a “quality and high-level” housing for workers.

“Both phases will accommodate 53,000 workers and is considered one of the largest workers accommodations in Qatar and in the Gulf Co-operation Council, as the project reflects Barwa’s strategy towards developing innovative solutions and supporting the Qatar National Vision 2030,” al-Ali stressed.

He said the construction work on the Barwa Al Khor residential project, which consists of 300 apartments and 50 villas for Qatar Shell staff, “is progressing.”

“Barwa is continuing its strategic analysis of development opportunities with various business models with government and private companies to ensure a promising investment prospects that can deliver sustainable growth and superior returns to shareholders,” he said.

Al-Ali said, “The board of directors and management is committed to developing the investment thinking of the Group to build a base of assets to generate sustainable returns, and this can be achieved only through evaluating the performance of current projects and formulating an optimum development strategy for the new investments to benefit the shareholders.

“Barwa has sizable land plots, which are currently being evaluated to determine the highest and best use, whether selling or developing, leasing, and selling purposes.” At yesterday’s general meeting, Barwa board of directors approved the proposed 22% cash dividend (QR2.2 per share) for 2014.

As part of the framework agreement finalised with Qatari Diar for divestment of selected assets, al-Ali said the company has completed the sale of shares of Barwa City and Barwa Commercial Avenue to Labregah.

“We concluded the sale of two plots of Barwa City-2 in Mesaimeer, settlement of plot 1 has been completed in 2014 and the second plot transaction will be completed in early 2015. “We signed the agreement to buy shares in the Arcapita Lusail development company, the transfer of ownership completed in January 2015. As a part of the deal, Barwa has got the ownership to develop 3.6mn square metres of land area, which is a significant addition to Barwa’s land bank,” al-Ali said.

Al-Ali said Barwa had doubled its net profit to QR2.78bn in 2014 mainly on the back of “stronger operating earnings” from profit on sale of properties, as well as better cost management.

Meanwhile, net rental and finance lease income grew 9% to QR1.27bn and net consultancy income by 11% to QR119.04mn.

Profit on sale of properties grew to QR2.93bn compared to QR954,000 in the previous year.

Total equity stood at QR15.92bn on a capital base of QR3.89bn and earnings-per-share was QR7.14 at the end of December 31, 2014.

Gulf Times