Barwa sells Lusail City plot for $700mn
Move reportedly part of debt payment plan
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.