Barwa liquidates four dormant divisions
Statement said subsidiaries were dormant and not revenue generating
Barwa is to liquidate four of its subsidiaries: Okaz Media, Barwa Technology, Lucair Real Estate and Knowledge Group.
With a shareholding of 45% by Qatari Diar (a company owned by the Qatar Investment Authority) Barwa is the largest listed real estate company in Qatar in terms of real estate developments, with a current market captilisation of $4.2bn, a 43% increase on last year.
All four subsidiaries have been dormant and were not generating any revenue, the Qatari group said in a statement.
This comes on the heels of the offloading of a massive retail development near the Industrial Area, according to Doha News in June this year.
In a regulatory filing, the company stated that it had sold its 95% stake in Barwa Commercial Avenue for QR9.02bn ($2.45bn) to Labregah Real Estate Co, a wholly-owned subsidiary of the Qatari Diar Real Estate Investment Co, with the remaining 5% owned by the Qatar government.
This formed part of an existing debt payment plan requiring Barwa to sell QR20bn ($5.49bn) worth of assets to the Diar. This, in turn, helped strenghten the government’s reach within the local real estate market.
In January, the Diar 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 this year, according to the report.