Barwa sells Lusail City plot for $700mn

Move reportedly part of debt payment plan

NEWS, Business, Barwa Commerical Avenue, Barwa Real Estate Company, Lusail City, Qatari Diar Real Estate Investment Co

Qatari developer Barwa Real Estate has sold its plot of land in Lusail City to the government for QR2.54bn ($700mn).

It is the company’s latest asset sell off amid challenging financial records due to over expansion.

In June it said it sold its 95% stake in Barwa Commerical Avenue, a massive retail development near the Industrial Area, for QR9.02bn ($2.45bn) to Labregah Real Estate Co, a wholly owned subsidiary of the Qatari Diar Real Estate Investment Co.

The move is reportedly part of an existing debt payment plan that required Barwa to sell QR20bn ($5.49bn) worth of assets to the Diar, Doha News reported.

In January, Qatari Diar also said it had agreed to buy Barwa Real Estate’s 37.34% stake in Barwa Bank for QR2.4bn ($659mn).

The group also sold its Barwa City project, a planned affordable housing development for up to 25,000 residents, to Labregah Real Estate Co for approximately QR7.57bn ($2.08bn), in May.

Barwa, Qatar’s largest listed developer, posted a quarterly net loss of QR42.9mn ($11.8mn) in the second quarter, compared to a profit of QR40.6mn in the year-earlier period, according to a Reuters calculation using first-half figures and previous reports. 

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