Qatar Real Estate News
Ezdan to sell part of its property portfolio
Ezdan Real Estate Company, the largest property developer in Qatar, has announced plans to sell part of its real estate portfolio to Malaysia-based REIT (Real Estate Investment Trust) for financing new projects, and is hoping to achieve net profit equivalent to that of the third quarter.
With about $1bn worth projects under construction, Ezdan is planning to sell about QR600mn-QR700mn worth projects to REIT based in Malaysia to help fund future projects. The Malaysian Company will purchase property and Ezdan will take up the management of that property for a fixed return.
This deal is hoped to be concluded this year, confirmed Hesham el-Sahtary, the Managing Director and CEO of the Company.
Ezdan hopes to see a strong demand for affordable housing in its local property market, where a shortage of middle-income housing supply has left vacuum for real estate companies to fill.
According to the CEO of the Company, El-Sahtary, the net profit of fourth quarter will be QR94mn, similar to that of third quarter.
“Our rents have fallen 10 to 15 percent, ever-since the onset of crisis, but despite the market situation, there is an increase compared to last year,” he said.
Moreover, the shareholders of Ezdan merged with Group of International Housing Company (GIHC) last week and fresh projects will be launched on completion of its merger, el-Sahtary said.
The merger is hoped to offer a stronger base to compete with local rivals such as Barwa Real Estate and the sovereign wealth fund’s property arm Qatari Diar. In the opinion of el-Sahtary, such a merger will make the company stronger and help in faster completion of projects.
With an expansion plan stretching to 2039, the first phase concluding in 2019, Ezdan plans to grow in its home market regionally and internationally. Future plan of projects are in pipeline for next 30 years, including residential and hotel projects which will be announced following the merger.
Among its planned projects are four towers worth QR2.5bn with Qatar General Insurance and Reinsurance Company, apart from plans to tap debt market.
Posted on 9/11/2009