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Tue 2 Feb 2010 09:37 PM

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Qatar's Barwa Real Estate seeks bridge loan

Company insists that loan is not linked with funding the merger with Alaqaria.

Qatar's Barwa Real Estate, which is buying Qatar Real Estate Investment (Alaqaria), is seeking a loan, it said on Tuesday.

Speaking to Reuters, a company spokesman said: "The bridge loan is categorically not linked with funding the merger with Alaqaria."

He added: "The proposed merger is an all share transaction and in no way linked to or dependent on any loan."

The spokesman could not immediately give more details on the loan.

In January, Alaqaria agreed to a takeover by Barwa, in a deal creating Qatar's ninth largest company with a market value of $3 billion.

Barwa, the country's second-largest developer by market value, last month launched a 1.5 billion riyal tender to provide amenities for its Barwa City project.

A media report on Monday said the developer was looking for a $1.5 billion bridge loan to fund the merger with Standard Chartered Bank and HSBC arranging the deal.

Barwa executives were not immediately available for comment.

Barwa is 45 percent owned by Qatari Diar Real Estate Investment Co, the property arm of the country's sovereign wealth fund.

Barwa shares closed 0.7 percent lower in Doha on Tuesday, underperforming the main index, which ended 0.5 percent higher. (Reuters)