By Courtney Trenwith
Qatar’s largest listed developer has continued to offload its assets to the government amid losses
Qatari developer Barwa Real Estate has sold its plot of
land in Lusail City to the government for QR2.54 billion ($700 million).
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 percent stake in Barwa
Commerical Avenue, a massive retail development near the Industrial Area, for
QR9.02 billion ($2.45 billion) 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 QR20 billion ($5.49 billion) 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 percent stake in Barwa Bank for QR2.4 billion ($659 million).
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 QR7.57 billion ($2.08 billion), in May.
Barwa, Qatar’s largest listed developer, posted a
quarterly net loss of QR42.9 million ($11.8 million) in the second quarter, compared to a
profit of QR40.6m in the year-earlier period, according to a Reuters
calculation using first-half figures and previous reports.