Mazaya Qatar Real Estate Development Company, the Doha-listed real estate developer, will generate higher profits at the end of 2012 compared to the previous year, chief executive Seraj Saleh Al-Baker told Zawya in an interview. The company is planning to expand across the GCC as it consolidates on the back of a resurgent real estate and construction sector, he said.
The company will add "significantly" to its overall investment of USD 700 million to achieve this aim and grow in its home market of Qatar as well as across the Gulf, the CEO said. Qatar itself has an ambitious plan to invest billions of dollars as it builds the infrastructure it needs to host the FIFA World Cup 2022.
Excerpts from the interview:
How do you see the company's performance this year?
We are considering a set of options to meet the requirements of new undertakings and continuous upgrading of our real estate projects. We believe the company's performance is solid, meets our projections in this sector and conforms to our strategies for 2012.
Despite variations in the reported profit at the end of the first half of 2012, when we reported a slight decline from QAR 7 million in the same period of 2011 to QAR 6.7 million, we see a lucrative full year 2012, and we expect to meet our objectives.
What are the reasons behind the slight drop in first-half profits?
A part of the QAR 7 million profit reported in the first half of 2011 stemmed from gains on deposits, on the investment account. This shrank as we deployed more funds into developing our projects. Nevertheless, we give a warranty that our strategy is proceeding in a way that fulfils our aspirations, given that our previous performance in Q1-2012 outperformed other listed companies with profit growth of 32.9%. We expect satisfying results at the end of 2012.
What are the most significant projects the company has delivered recently?
The company has completed the Qatar National Center for Conference's (QNCC) Tala Residence, the compound in which we have developed 346 residential units for QNCC employees. This is the first project of its kind to be built complying with the Gold certification standards of Leadership in Energy and Environment Design, or LEED, issued by US Green Building Council.
What are projects Mazaya Qatar is executing now?
Mazaya Qatar's pipeline involves four outstanding projects worth QAR 2.6 billion, including Tala Residence and developing and managing the Sidra Medical and Research Center's QAR 630 million Sidra Village project on a 20-year build, operate and transfer agreement. The project comprises 1,165 residential units and will be completed in Q4-2013.
We are also building and operating the Marina Mall Center in Lusail, Doha, with QAR 1 billion investment and will be ready to deliver at the beginning of 2015.
There is also the Seven Zones project, on which we have finalized the planning details. Operations are planned to be finished within a short period, pending the necessary approvals from the Urban Planning Administration.
Will the company seek any credit facilities from lenders?
Mazaya Qatar has many options for financing its various projects as it enjoys huge financial solvency. We are considering restructuring the capital of the Marina Mall project in agreement with established financial institutions. Even so, we emphasize that the financing channels are all achievable due to the company's strong position and its capital adequacy. Moreover, the company's financial position is robust and the company owes no debts to any party.
Does the company have plans to execute new projects in Qatari or GCC markets?
Yes, this was clear from our pervious declarations about our interest to tap into new real estate investments and projects in Qatar, amid good indicators from different economic sectors. Also, the company is studying the available investment prospects and is exploring the GCC markets.
Have you started the second phase of Marina Mall at Lusail?
We have picked the engineering consultant and started the initial works, which include grading laying the foundations. We are looking forward to commence the second phase by the end of 2012.
What about the Seven Zones project; how much will it total cost?
The project value totals QAR 456 million. It is intended for real estate developers as it consolidates their necessities in one place, over an area of 30,000 square meters in northern Doha. The execution will start by the end of the year or at the beginning of 2013.
How attractive do you think the Qatari market is to foreign investment; and how does this affect your operations?
GCC countries are committed to increasing real estate activity; it is a key sector for the region. They are sparing no effort in improving the base with financial sector reforms and providing more attractive opportunities. All of these factors are strong triggers for foreign investment.
What are the key plans for 2013?
Simply put, Mazaya Qatar is undertaking the completion of the current projects and continuing scouting the region's markets for new opportunities, as well as forging joint ventures and partnerships that align with our investment aspirations.
© Zawya 2012
