Beirut (APD) - Doha-based Barwa Real Estate plans to invest QR 925.78 million ($254.4 million) into two projects in the New Doha and the old Hitmi areas of Doha. The projects are the inaugural developments for the company, which was incorporated last month as Qatar's largest real estate company by capitalization.
Barwa's project in New Doha, the first to be executed by the firm, will involve an investment of QR 393.8 million ($108.2 million) into a complex of residential, office and commercial buildings along with several recreational facilities. It will be established on 82,851 square meters of land in the New Doha district.
The real estate company expects to achieve revenues of QR 1 billion, equivalent to 60.6% of total cost, from selling the project. Construction works are expected to start soon and are scheduled to be completed by 2008.
The second project, valued at QR 531.98 million ($146.1 million), is located in the old Al Hitmi region and will cover an area totaling 70,000 square meters. Construction is supposed to begin at the end of 2006 and be completed in 2009.
Barwa's expected revenues from the sale of this project are around QR 1.5 billion, representing 64.5% of the total cost.
The company is preparing two further sites for development in Doha's Al-Maared and West Coast streets, Barwa spokesperson Sirel Khatem Hashim told APD on Tuesday.
These projects will cover an area of around 2.1 million square meters and will include residential, commercial and office buildings and a mega-hotel with 100 floors. Hashim did not disclose the timelines and projected investment amounts for these two projects.
Barwa's company's internal rate on return (IRR) for the coming five years is estimated at 21.8% according to the capital invested and the expected revenues. The payback period for the capital is four years.
Barwa was established in December 2005 with 45% shareholding participation by Qatar's state-owned Diar Real Estate Investment Company. Capitalized at QR 2 billion, the firm offered 55% of its shares to the public in a successful IPO.
The shares are scheduled to start trading on the Doha Securities Market in the first week of February. [TS]
By Nadim Issa, APD Staff Writer in Beirut
© APD (Arab Press Digest) 2006
