Barwa Real Estate Aims 15% Return on Equity

Doha, July 6 (QNA) - Barwa aims 15% return on equity and doubling shareholders' equity over the next five years. The Qatari real estate group announced this following its board of directors approval for its most ambitious five-year plan since the companys beginning in 2005. The company plans QR 15 Billion capital spending and doubling 2014 operating income over the next five years. The company added a rider to this goal saying, "providing debt financing does not exceed stakeholders equity". Its new plan focuses on local market following a market study that expects population growth ahead of major public events like the FIFA World Cup in 2022. The group will seek partnership in government real estate projects such as Madinat Al Mowatir, Manateq, and Al Khor Workers Sports Complex. Another growth area Barwa eyes new residential projects of medium to high rental rates: These projects will include health, education and commercial services. Currently, the group has residential projects in Mesaimeer, and industrial areas in Al Khor, Mesaieed and Dukhan. The plan includes maximising assets such as using Barwa Banks land spread over 4.5 million square metres in Qatar. The bank hold land in Lusail City, Mesaimeer, New Doha, Wakra, Energy City, Al Khor, Grand Hamad Street and Ras Laffan. The new plan aims to develop all these plots by 2020. "These income-generating assets will work towards increasing operating income and achieve sustainable growth. Developed assets will be sold to boost the groups financial position and decrease real estate associated risks," the company said. Another key area is improving efficiency. To this end Barwa aims to increase revenues from existing residential and commercial projects in Al Sadd, Al Wakra, West Bay, Mesaimeer, Sailiya, Al Khor, Mesaieed, Dukhan and Old Salata. The group targets high occupancy rates in these projects. The company also aims to increase revenues from subsidiaries Alaqaria, Qatar Project Management, Al Waseef for Asset Management, Guidance Hotels Investment Company and Barwa District Cooling Company. The Group's Board of Directors' Chairman Salah bin Ghanim Al Ali said, "Barwa Real Estate draws its strength from shareholders trust, strong financial position and expertise in the business." The directors have vowed to fulfil their commitment to increase value of shareholders investments and keep equity growth, he added. Reiterating this, Barwa Real Estate Chief Executive Officer Salman Al Muhannadi, said, "The Boards main goal is to increase shareholders equities and to achieve sustainable growth. The priority was to develop a plan aiming higher returns on the Group assets and projects." On March 31, 2015, Barwas total assets were QR 29 Billion and total equity of QR 18 Billion. (QNA)