DOHA: The Barwa City in Mesaimeer. The company’s new business plan is considered to be the largest since its establishment in 2005 in terms of the number and size of the projects to be developed over the next five years, said a spokesman.
Qatar’s real estate major aims at a minimum 15% return on equity and doubling of shareholders’ equity by 2020
Barwa Real Estate Company has outlined QR15bn capital expenditure for the next five years as it aims at a minimum 15% return on equity and doubling of shareholders’ equity by 2020.
Barwa, which holds a large land property of 4.5mn sq m in Qatar in different areas as Lusail City, Mesaimeer, New Doha, Wakrah, Energy City, Al Khor, Grand Hamad Street and Ras Laffan, aims to complete the development of all these plots by 2020.
These were disclosed by the realty developer while unveiling its new five-year plan, which is aimed at achieving sustainable growth and maintaining a strong financial position through improved current operational efficiency and enhanced revenues from subsidiaries like Alaqaria, Qatar Project Management, Al Waseef for Asset Management, Guidance Hotels Investment Company and Barwa District Cooling Company.
The new business plan (2016-20) is considered to be the largest since its establishment in 2005 in terms of the number and size of the projects to be developed over the next five years, said a spokesman of Barwa, whose total assets and total equity stood at QR29bn and QR18bn respectively as on March 31, 2015.
“The priority is to develop a business plan that aims at achieving higher returns on the group assets and projects, through developing high standards projects within the assigned budget and schedule, in addition to improving customers’ service,” according to Salman al-Muhannadi, Barwa chief executive.
Barwa is also planning to maintain a solid capital structure, provided that debt financing does not exceed stakeholders’ equity. “The plan (2016-20) aims to pursue Barwa developmental path in order to achieve its vision and mission to meet its shareholders’ ambitions by increasing their equity and returns and ensuring sustainable growth,” a company spokesman said.
Reiterating its stand on developing the local market, the spokesman said Barwa conducted a study on the local market and determined the real estate development needs for the coming years based on the expected population growth, the 2022 World Cup requirements and the Qatar National Vision 2030.
“The results revealed promising opportunities within the local market that go hand in hand with the company’s vision and mission of achieving high returns, with a prevailing lower risk compared to the international market,” he said.
The majority of Barwa upcoming projects will work towards developing residential units of medium to high rental rates, which include health, educational and commercial support services, in addition to the group’s existing workers residential projects in Mesaimeer, and industrial areas in Al Khor, Mesaieed and Dukhan.
Asserting that it will make the most out of its assets, Barwa said these “income-generating assets” will work towards increasing operating income and achieving sustainable growth.
“Assets that will be developed and sold aim at supporting the group financial and cash positions and decreasing real estate associated risks,” the spokesman said.
Stressing on the need for improved current operational efficiency, he said Barwa currently owns many operational projects that serve as residential units, offices, shops and showrooms in different areas such as Al Sadd, Al Wakrah, West Bay, Mesaimeer, Sailiya, Al Khor, Mesaieed, Dukhan and Old Salata.
“The group will work on increasing these projects revenues through targeting and maintaining high occupancy rates and improving customer services,” he added.
