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Sun 24 Oct 2010 12:04 PM

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Rental surge sees Barwa profits up 25%

Qatar’s largest publicly-traded real estate firm by assets reports 139 percent rise in rental income

Rental surge sees Barwa profits up 25%
QATARI BARWA: Barwa is Qatars second largest developer by market capitalisation

Barwa
Real Estate Company, Qatar’s largest publicly traded real estate developer by
assets, has reported a 25 percent rise in profits on the back of rising rental
income,

“The
interim financial statements revealed a net profit of QR775.6m ($213m) for the
nine months period ended September 30, 2010 in comparison to a net profit of
QR622.6m ($171m) for the corresponding period last year,” Barwa said in a
statement to the Qatar Exchange.

The
rise in profitability was attributed to the increase in rental income, which rose
139 percent to QR289.2m ($79.43m) over the same period.

Barwa,
which is 45 percent owned by the Qatar Investment Authority sovereign wealth fund, is
the third largest property developer in the Gulf.

The company was hard hit
by the sharp correction  in the region’s property sector and, in July, was forced to seek $3.5bn in financing from Qatari Diar Finance.

Last
month, Barwa confirmed that it had delayed its $8.3bn Al Khor project due
to sluggish market conditions. The project, a mixed-use city north of Doha, was
originally due for completion in 2015.

In an emailed statement, Barwa said it had work continued on its existing projects. Some 60 percent of construction works at its Barwa City project are complete, the firm said, while the Barwa Alsadd development is slated for handover in the second quarter of 2011.

Barwa
also confirmed that it was considering two sites for its Salwa Bay Resort
project, which will be developed over the next six years.