Pearl-Qatar developer secures $439m partnership
UDC inks deal with Qatar's Pension and Social Insurance Authority
United Development Company (UDC), the developer behind Qatar's flagship Pearl project, has secured a new strategic partner through the sale of QR1.6bn-worth of shares, in a bid to boost its capital.
Qatar-based UDC has sold 112m shares to The Pension and Social Insurance Authority, in a deal worth QR1.6bn($439m). The move was announced at a meeting of investors in Doha this week, where shareholders also agreed to scrap a clause prohibiting any shareholder from owning more than 10% of the company shares.
“This will give strength to the company,” chairman Hussein Ibrahim Alfardan told Gulf Times after the meeting.
“Our company will be in good health not only because of the share they bought and that we have more liquidity, but we will be having a big support, when they are with us. We have welcomed them from the minute they requested to join us.”
UDC was in a good position to grow following the progress of all its projects, including the Pearl-Qatar, he added.
“Our profit is up all the time. The Pearl-Qatar island is unique. Although many people want to compare the prices of The Pearl with the other locations, this is the best of all.”
UDC in January reported a net profit of QR3.772bn ($1.03bn) for last year compared with QR617m for 2010. Total assets increased to QR19.056bn, compared to QR10.878bn as of the end of 2010, it said in a statement.