Doha: Barwa Real Estate Group has announced the completion of the execution of the sale agreement for the plot of land owned by Wahat Al Riyadh Real Estate Company (entirely owned by Barwa Group) and registration of the same to the buyer at the notary public in the Kingdome of Saudi Arabia, after fulfilling the terms and conditions of the sale agreement and paying the rest of the land price. Wahat Al Riyadh Real Estate Company received an amount of SAR712.38m as payment for the rest of the land price as part of the agreement.
As previously announced, the total sale price amounted to SAR742.38m, excluding the real estate tax which was borne by the buyer, while the company has previously received an amount of SAR30m as deposit for the transaction.
It will be noted that the Janadriyah land was purchased in 2016 for a total area of 2.21 million sqm for a total value of SAR659.27m, and the company incurred other amounts spent on land development plans, in addition to the financing costs and expenses of the sale transaction. It is estimated that the net selling profit resulting from the transaction will amount to SAR46m.
It is targeted that the sale price will enhance the cash position of Barwa Group so that it can meet its obligations and support development plans of the Group. It is to be noted that there is no conflict of interests between the contracting parties to this transaction.
Barwa Real Estate Group, a leading real estate and investment company in Qatar and the region, has reported a QR533m net profit for the period ending on June 30, 2021. The total assets of the Group also exceeded the value of QR35bn.
The Group is currently studying the economic feasibility of many of the development projects put forward by the Public Works Authority under the Public-Private Partnership system. Barwa will also continue in studying its available space lands to determine their optimal use to support the financial position of the Group and contribute to the development of the sustainable revenues. The group continues to study the development potential of its large land holdings spread over various locations, including notably large plots in Lusail and other strategic sites in Qatar.
