DOHA: Barwa Real Estate Group has announced selling its assets valued at QR16bn in Qatar and Egypt to repay loans. The assets being sold include Barwa Al Khor land in Qatar and Barwa New Cairo project in Egypt.
“Barwa Real Estate will use the revenue of selling the mentioned assets in order to reduce its loans. Moreover, the selling price will be set according to the book value. Hence, there won’t be any profit or loss involved in the process”, the company said yesterday in a statement.
It is expected for the results of this sale to be reflected in the group financial statements by the fourth quarter of this year.
Reuters reported Qatar’s property market is still recovering from oversupply that saw prices slump in the aftermath of the global economic crisis in 2008. Investors are hoping its successful bid to host the 2022 soccer World Cup will reignite a boom in the sector.
In May, group Chief Executive Abdulla al-Subaie said costs had been reduced as a result of restructuring, and the company was now focused on improving the operational side of the business.
Earlier this month, Barwa’s deputy group chief executive said it was looking to invest in the London property market before the end of the year, without giving details on potential targets or how much it was willing to invest.
Barwa, Qatar’s largest listed property developer, is 45-percent-owned by Qatari Diar, the property arm of the country’s acquisitive sovereign wealth fund, the Qatar Investment Authority, according to reuters.
office block at
Cavendish Square
Meanwhile, Barwa, in a seperate posting on Qatar Exchange (QE), announced the ownership of office block at Cavendish Square in the West End of London, through its UK based company, Cavendish Capital.
Cavendish Square is considered to be one of the most desirable office addresses in London. Many international companies have a presence and, as a consequence, the area commands premium rentals.
Many international companies have a presence and, as a consequence, the area commands premium rentals. This is predominantly an office location however, Oxford Street, London’s premier shopping thoroughfare, and Marble Arch are in close proximity. Cavendish Square is a formal London Square, laid out on a circular plan.
The property, a Grade 2 listed former townhouse dating back to the 1740’s, commands a prominent position on Cavenish Square. Traditional features characterize the property both externally and internally. The accommodation provides 11,510 sq ft of premium refurbished office accommodation over basement, four upper floors and attic accommodation. Part of the property is occupied by Avanta Serviced Offices whilst Barwa Real Estate and its associated companies use the remainder as their European base.
The furnished office building is fully leased. It is located within an area which was originally formed of a number of small villages established next to each other which later became one small town. It is a historical building, with a library room made entirely of wood, a fire place and stairs classified as British Archeology.
Barwa is now in the process of obtaining license from British Municipality to build a sixth floor on 300 square meters, made of glass and iron which will follow the standards of green buildings and will add to the glamorous look of the building. Barwa is also considering reforming the building parking lot into a restaurant.
The Peninsula
