Barwa Real Estate swings to Q2 loss, in talks to sell more assets

July 24, 2014 - 10:29:41 am

DOHA: Qatar's largest listed property developer, Barwa Real Estate, swung to a second-quarter net loss, according to Reuters calculations.

The company posted a quarterly net loss of QR42.9 million ($11.8 million) on Thursday compared to a profit of 40.6 million riyals in the year-earlier period, Reuters calculated using first-half figures and previous reports.

Barwa made a profit of QR222.2 million in the first half of 2014, up from QR199.2 million  in the corresponding period of 2013, it said in a statement.

The developer said it was working on selling one of its land assets in a medical and educational project in the city of Lusail to the government's Higher Committee for Projects and Heritage.

It did not provide a value of the asset.

Some property firms in Qatar are struggling even as the country throws billions of dollars of its natural gas wealth into building infrastructure in preparation to host the 2022 soccer World Cup.

Barwa, 45 percent owned by Qatari Diar, the real estate arm of the Gulf state's sovereign wealth fund, notched up liabilities of about QR37 billion at the end of 2012 because of overexpansion.

Qatari Diar stepped in with financial aid last year, agreeing to buy some of Barwa's assets for $7.1 billion.

In June this year, Barwa said it was selling a 95 percent stake in Barwa Commercial Avenue Co to Qatari Diar for QR9.0 billion .

Barwa has properties in France, Switzerland and the United Kingdom and focuses on retail, office, hospitality and residential developments.

Shares in the company tumbled 8.5 percent in morning trade after the earnings announcement. (Reuters)