Published: Jun 24, 2014
Source: Qatar Tribune

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Barwa's Commercial Avenue to be sold to Qatari Diar for $2.5 bn

Property developer Barwa Real Estate said on Monday it was selling its 95 percent stake in Barwa Commercial Avenue Co to the property arm of the country's sovereign wealth fund for QR billion riyals ($2.5 billion).

The deal is part of an agreement by Barwa to sell assets worth a total of $7.1 billion to Qatari Diar, which was originally announced in June last year.

The stake will be sold to Labregah Real Estate Co, a wholly-owned subsidiary of Qatari Diar, the developer said in a statement to the Qatar Exchange. 

The government, which is the other shareholder of BCA Company, will retain its 5 percent ownership stake in BCA Company.

According to the company statement, the completion of the transaction is subject to the approval of the Qatar Financial Markets Authority and other customary closing conditions. 

This transaction has been entered into pursuant to the framework agreement between Qatari Diar and Barwa which has been previously announced to the market on in June and November last year.

Last month, Barwa signed a deal worth QR7.57 billion ($2.08 billion) to sell Barwa City project to Qatari Diar. Qatar's largest listed real estate company said it is starting construction work for package 2 of the second phase of Barwa Al Baraha project. It is the largest development project for workers living in Qatar. Package 2 comprises 32 buildings, G+ 3 floors, and each building will have 130 rooms that will accommodate 24,000 workers. 

It will also have four dining halls, two playgrounds, two mosques, as well as restaurants and utility shops."This is a commitment towards building a society where people from different social backgrounds live in harmony and raising living standards of those with little income,"Barwa said. 

Measuring approximately 1.8 million square metres, Barwa Al Baraha development is designed to serve as an integrated workers'city that will accommodate 53,000 workers and employees, making it the GCC's largest workers'accommodation. Barwa is developing the project in two phases. 

Phase one focuses on establishing Qatar's largest truck and vehicle parking space, while phase two will provide worker and staff accommodation, pre-owned car show rooms, auctions, workshops and stores for truck and machinery maintenance services.

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