Barwa Real Estate, the Qatari real estate developer, is undertaking plans to sell its assets estimated to be worth 26 billion riyals or US$7.1 billion in order to reduce debt. The sale would be made to the country's sovereign wealth fund's property arm according to the company's press release.
Amongst the assets sold off to Qatari Diar are Barwa Commercial Avenue, Barwa Al Sadd and the Barwa City projects. Qatari Diar owns nearly half of Barwa and aside from these assets, other parts of Barwa Real Estate's investment portfolio would be transferred.
In a statement released on the website of the Qatar bourse, "The sale proceeds will be directed towards extinguishing the company's debts, reducing financing costs and improving the company's financial position."
The company added that the transfer of the sold assets would be completed by year's end.
Barwa's investment portfolio includes properties located in France, Britain and Switzerland, consisting of commercial, hospitality and residential developments.
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