Barwa Real Estate announces that Lusail Golf Development Company, fully owned by the Barwa Group, has reached an agreement to sell two land plots in the Lusail area with a total area of 3,476,192 (three million and four hundred seventy-six thousand and one hundred ninety-two) square meters. The total agreed selling price is 6,361,014,218 (Six billion Three hundred Sixty-one million and fourteen thousand two hundred and eighteen) to be collected over the period from the date of completing the sale to the second quarter of 2024. The full proceeds from the sale will be used to settle financial obligations within the group. It is targeted to complete all necessary procedures for the sale process during the third quarter of 2023. It is known that Lusail Gulf Company had purchased the mentioned land plots in the years 2010 and 2014. The book value of these plots is QAR 5,890 million as shown in the consolidated financial statements as at March 31, 2023. The group has recorded valuation losses related to the same plots amounting to QAR 522 million in the net fair value gain on investment properties in the consolidated financial statements of the company for the last fiscal year, 2022. It should be noted that the estimated profits from the sale transaction will be announced after the completion of the sale and transfer of ownership to the buyer, in order for the group to calculate all costs and expenses related to the land. The sale transaction is part of Barwa's strategy to divest from non-performing assets, which allows for a reduction in financial obligations and financing costs, which have recently seen a significant increase in global markets. This will have a positive impact on the group's cash flows, financial position, and financial indicators. It also contributes to directing operating cash towards developing the income-generating investment portfolio and achieving sustainable growth in shareholder returns.
