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Tue 2 Dec 2014 01:14 PM

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Qatar's Barwa inks $1.47bn deal to sell land plots

Barwa Real Estate says first plot will be delivered to buyer by end of 2014; second plot in Q1 2015

Qatar's Barwa inks $1.47bn deal to sell land plots

Qatar's Barwa Real Estate has signed a deal to sell two plots of land for a combined 5.34 billion riyals ($1.47 billion) to an unidentified buyer, the company said on Tuesday.

Barwa will deliver the first plot of land, which it is selling for 2.63 billion riyals, by the end of 2014, it said in a statement on Qatar's stock exchange. The second plot, worth 2.7 billion riyals, will be delivered to the buyer in the first quarter of 2015.

"This transaction aims at increasing the available liquidity with Barwa to cover its financial obligations, and allows Barwa to consider venturing in new projects and investments," the company said in the statement.

It said the buyer was a Qatari firm that was not a subsidiary of any listed company, but did not provide further details.

Qatar's government owns a 45 percent stake in Barwa, according to Reuters data. In October, the developer said it would sell land worth 2.54 billion riyals ($697.4 million) to the government.

Qatari Diar, the real estate arm of Qatar's sovereign wealth fund, stepped in with financial aid last year, agreeing to buy some of Barwa's assets for $7.1 billion. In June this year, Barwa said it was selling a 95 percent stake in Barwa Commercial Avenue Co to Qatari Diar for 9 billion riyals.

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