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Barwa Real Estate Co. (Q.S.C) held Tuesday 8th Apr 2014 its Ordinary Annual General Meeting, with a complete quorum of 74.98%, at 04:30pm in Al Dasha Hall, Sharq Hotel - Doha. Barwa Board of Directors discussed with shareholders all points listed on the meeting agenda, in addition to discussing and approving Auditors’ report and Sharia Supervisory Board report.
During the Ordinary Annual General Meeting, H.E. Mr. Salah Bin Ghanim Al Ali, Chairman of Barwa Real Estate Group, presented the Board of Directors report on the company’s activities and its financial position for the year ended 31/12/2013. It included a full review of the company’s achievements, its financial results in 2013 and its future plans.
Driven by Qatar’s strong economic performance and the large scale economic diversification program as part of Qatar National Vision 2030 and National Development Strategy, the real estate sector continues its growth momentum delivering quality projects supporting the infrastructure development. Barwa, being a leading player with competency across the complete value chain of real estate development, investment, operational management and financial services continued its history of strong growth and achieved best performance in its local and international investment portfolio.
COMPANY’S PERFORMANCE AND ACHIEVEMENTS
2013 was a year that witnessed important milestones in Barwa delivering solid financial and operating performance. Two years ago, Barwa had set up a strategic roadmap to turnaround the group portfolio, to deliver acceptable level of returns to their stakeholders and to position Barwa towards achieving its vision to be “reliable real estate company recognized for its strong values, excellence and sustainable returns to its stakeholders”. 2013 marked the completion of the portfolio turnaround phase, cleaning up the balance sheet offloading the heavy legacy assets, removing the high liabilities associated with these assets, achieving sustainable cost savings and high profitability margin. Barwa has also implemented several initiatives last year focusing on enhancing the operational efficiency, building the right capabilities and a high performance culture. Some of the key accomplishments for 2013 include;
• Achieving a net profit of QR. 1,370 Million with QR. 3.53 per share compared to Net Profit of QR. 1,123 Million with QR. 2.92 per share in 2012. As a result of implementing good financial discipline and successful capital recycling, Barwa has accomplished sustainable cost savings as reflected in decrease of general and administrative expenditure from QR. 431 Million in 2012 to QR. 396 Million in 2013 and reduction of the total liabilities from QR. 37 Billion in 2012 to QR. 30 Billion in 2013
• Barwa Commercial Avenue, the unique mixed use retail project consisting of retail, office and residential units was completed and handed over to tenants. Occupancy has reached 100% for the residential units and 50% for the retail units
• Barwa City achieved 90% occupancy and Barwa Al Sadd, Barwa Village and Masaken projects maintain more than 95% occupancy
• Barwa Al Baraha Phase 1, the high quality workers accommodation is 75% complete and is on target to be delivered by 3rd quarter of 2014. Occupancy expected to reach 90% by the yearend
• Barwa Financial District, which was sold to QP is progressing as per schedule and expected to be completed and handed over by 1st quarter of 2015
• Barwa Al Sadd Hotel tower, which was sold to Katara Hospitality, is almost completed and will start operations in 2nd quarter of 2014.
• Barwa Al Khor residential project consisting of 300 residential apartments and 50 villas for Qatar Shell staff is progressing well and is on target to achieve the contractual completion date of 4th quarter of 2014.
• Al Aqaria continues to focus on providing housing and amenities in Industrial Area and has QR. 1.94 billion worth of projects under construction and around QR. 3.79 billion projects in the pipeline (under design/negotiation).
• Refurbishment works on the London based Northrow project, offering office spaces in the prime west end area of London completed within the targeted timeline of July 2013 and has achieved an occupancy rate of more than 90%.
• Amicable settlement entered with Real Estate Investment Establishment on the Ajman project, recovering QR.230 Mn. which was earlier under impairment.
• Barwa was awarded a significant judgment in Bahrain Chamber of Dispute Resolution against Dannat Resort Development Company in excess of QR. 61 Mn.
• Framework agreement finalized with Qatari Diar for divestment of Barwa City, Barwa Commercial Avenue, Barwa AlSadd, Barwa Bank, Astrakhan Russia, Laranca Cyprus, Guidance Hotel Investment Company, Al Imtiaz Kuwait, QD-SBG, QD-CPC and AFS portfolio.
GOVERNANCE, SYSTEMS AND RISK MANAGEMENT
The Board of Directors and Executive Management are committed to developing and maintaining highest standards of governance in every area of the business activities. Governance is at the core of Barwa’s corporate strategy and we continue to strengthen the brand perception and credibility through uncompromising commitment to greater disclosure and transparency. 2013 marked great progress in implementing the corporate governance policy that covers the governance principles, board of directors, duties and responsibilities, board and management committees and their terms, internal control and risk management. Barwa continues to refine operational policies, processes and functions eliminating layers and complexities in order to achieve the optimal level of efficiency in its operations. It has also implemented several enhancements to the existing ERP system to improve the speed and efficiency of operations.
The risk culture is embedded in the corporate strategy and is crucial towards efficiently planning and delivering core real estate projects and managing investment portfolio. During last year, Barwa has undertaken a ‘Lessons learnt’ exercise involving the key stakeholders to gather, document and analyze the lessons from the past projects and to serve as a guideline to improve the processes related to planning, execution and delivery of the future projects.
HUMAN CAPITAL
Barwa talent development strategy entails strong focus on professional development solutions for enhancing the core business knowledge, skills and industry best practices. During 2013, Barwa implemented a “Core Business Capacity Building Program” in association with world’s leading professional body in real estate education, the UK based Royal Institute for Chartered Surveyors (RICS) for the executive staff. It also implemented a 360 degree feedback process for the Senior Management, which is a good talent development tool that assist in setting and measuring focused personal and professional development goals.
Barwa is strongly committed to Qatar National vision 2030 and its human development pillar through education, training, learning and continuous development programs for national talents and establishment of internationally recognized standards. Qatarization has reached more than 50% of the total headcount. Most of the Senior Management positions are occupied by Qatari nationals.
CORPORATE SOCIAL RESPONSIBILITY
Barwa is proud of its contribution to Qatar’s society, and will continue to find ways of supporting the community through a range of activities, support and contributions. Believing in its role towards the community, Barwa has offered a number of units in its Real Estate projects for the social associations & corporations in Qatar.
FUTURE PLAN 2014
Barwa has an exciting land bank of opportunities which are being assessed to identify the best use of the company’s assets with the aim of maximizing shareholder value. It is progressing with development of Barwa Al Baraha Phase 2, which is an extension of current Baraha Phase 1. Both phases together will accommodate 53,000 workers and is considered the largest workers accommodation in Qatar and the GCC. The project also reflects Barwa's strategy towards developing innovative solutions and supporting the Qatar National Vision 2030 by contributing towards the country’s urban development. As Barwa continues on the path to develop integrated communities, another project that will be launched soon is Fox Hills North located in the city of Lusail. This project once completed will have about 3000 units. Phase I of this project is Dara, which will be offered to the public this year. Construction works also expected to start on Barwa Al Doha, which will be developed as a strip retail catering to local merchant traders. The project is designed to have quick development time frame and generating strong lease income resulting in a short payback period of 4 years. Barwa acquired the strip of land on the eastern boundary of Barwa Village in Dec 2012, which has good road frontage with high passing traffic and it controls the arrival experience into Barwa Village making the land attractive to retail tenants. During 2014, we are planning to start development of the land as retail space on G+M with residential space on 1st and 2nd floors.
Barwa is continuing its strategic analysis of development opportunities with diversified business models such as BOT, BTO, PPP models, with prospective local clients such as Ministry of Energy, Qatar University, Ministry of Municipality & Urban Planning, Motor City, Qatar Rail and other similar opportunities to ensure a strong pipeline of quality investment prospects that can deliver superior returns for shareholders and ensure sustainable growth.
APPRECIATION
At the end, Barwa Chairman extended his appreciation to His Highness Sheikh Tamim Bin Hamad Al Thani, the Emir of the State of Qatar, for his great support and keenness to enrich Qatar's renaissance and achieve the best results for its people, and His Excellency Sheikh Abdullah bin Nasser bin Khalifa Al Thani, Prime Minister and Minister of Interior, for the continuous support which the government offers to Barwa Real Estate. He also thanked the shareholders and customers for their support, as well as the group employees for their dedication and loyalty.
Shareholders were then requested to approve the Board of Director report and the financial position for 2013, as well as 2014 future plans. The Auditors’ report on the financial statements of the company was discussed and approved as well. Shareholders discussed the Board of Directors’ proposal for profit distribution which recommends a cash dividend of 20% from the outstanding share capital amounting to QR 2 per share, for profit distribution of the year ended 2013, which was approved by all shareholders. Remuneration of Directors was determined and approved, and Price Waterhouse was appointed to audit 2014 financial year, with QR 1,439,000 million fees for their services.
The last point of the Annual General Assembly Meeting agenda was the elections of Board member. 14 applicants competed over 4 seats in Barwa Board of Directors, 1- Sheikh Khalid Bin Khalifa Al Thani – representing Milaha Company, 2- Mr. Mohammad Ibrahim Mohamad Yaqoub Al Sulaiti 3- Mr. Mohammad Abdulaziz Saad Al Saad 4- Mr. Abdullah Abdulaziz Nasir Al Atiyya – representing Aludaid Real Estate Investment Company, were all elected to fill the seats. The new members of the Board of Directors held their first meeting directly after the General Assembly Meeting of the group, and Mr. Mohammad Abdulaziz Al Saad was appointed Deputy Chairman.
During the Ordinary Annual General Meeting, H.E. Mr. Salah Bin Ghanim Al Ali, Chairman of Barwa Real Estate Group, presented the Board of Directors report on the company’s activities and its financial position for the year ended 31/12/2013. It included a full review of the company’s achievements, its financial results in 2013 and its future plans.
Driven by Qatar’s strong economic performance and the large scale economic diversification program as part of Qatar National Vision 2030 and National Development Strategy, the real estate sector continues its growth momentum delivering quality projects supporting the infrastructure development. Barwa, being a leading player with competency across the complete value chain of real estate development, investment, operational management and financial services continued its history of strong growth and achieved best performance in its local and international investment portfolio.
COMPANY’S PERFORMANCE AND ACHIEVEMENTS
2013 was a year that witnessed important milestones in Barwa delivering solid financial and operating performance. Two years ago, Barwa had set up a strategic roadmap to turnaround the group portfolio, to deliver acceptable level of returns to their stakeholders and to position Barwa towards achieving its vision to be “reliable real estate company recognized for its strong values, excellence and sustainable returns to its stakeholders”. 2013 marked the completion of the portfolio turnaround phase, cleaning up the balance sheet offloading the heavy legacy assets, removing the high liabilities associated with these assets, achieving sustainable cost savings and high profitability margin. Barwa has also implemented several initiatives last year focusing on enhancing the operational efficiency, building the right capabilities and a high performance culture. Some of the key accomplishments for 2013 include;
• Achieving a net profit of QR. 1,370 Million with QR. 3.53 per share compared to Net Profit of QR. 1,123 Million with QR. 2.92 per share in 2012. As a result of implementing good financial discipline and successful capital recycling, Barwa has accomplished sustainable cost savings as reflected in decrease of general and administrative expenditure from QR. 431 Million in 2012 to QR. 396 Million in 2013 and reduction of the total liabilities from QR. 37 Billion in 2012 to QR. 30 Billion in 2013
• Barwa Commercial Avenue, the unique mixed use retail project consisting of retail, office and residential units was completed and handed over to tenants. Occupancy has reached 100% for the residential units and 50% for the retail units
• Barwa City achieved 90% occupancy and Barwa Al Sadd, Barwa Village and Masaken projects maintain more than 95% occupancy
• Barwa Al Baraha Phase 1, the high quality workers accommodation is 75% complete and is on target to be delivered by 3rd quarter of 2014. Occupancy expected to reach 90% by the yearend
• Barwa Financial District, which was sold to QP is progressing as per schedule and expected to be completed and handed over by 1st quarter of 2015
• Barwa Al Sadd Hotel tower, which was sold to Katara Hospitality, is almost completed and will start operations in 2nd quarter of 2014.
• Barwa Al Khor residential project consisting of 300 residential apartments and 50 villas for Qatar Shell staff is progressing well and is on target to achieve the contractual completion date of 4th quarter of 2014.
• Al Aqaria continues to focus on providing housing and amenities in Industrial Area and has QR. 1.94 billion worth of projects under construction and around QR. 3.79 billion projects in the pipeline (under design/negotiation).
• Refurbishment works on the London based Northrow project, offering office spaces in the prime west end area of London completed within the targeted timeline of July 2013 and has achieved an occupancy rate of more than 90%.
• Amicable settlement entered with Real Estate Investment Establishment on the Ajman project, recovering QR.230 Mn. which was earlier under impairment.
• Barwa was awarded a significant judgment in Bahrain Chamber of Dispute Resolution against Dannat Resort Development Company in excess of QR. 61 Mn.
• Framework agreement finalized with Qatari Diar for divestment of Barwa City, Barwa Commercial Avenue, Barwa AlSadd, Barwa Bank, Astrakhan Russia, Laranca Cyprus, Guidance Hotel Investment Company, Al Imtiaz Kuwait, QD-SBG, QD-CPC and AFS portfolio.
GOVERNANCE, SYSTEMS AND RISK MANAGEMENT
The Board of Directors and Executive Management are committed to developing and maintaining highest standards of governance in every area of the business activities. Governance is at the core of Barwa’s corporate strategy and we continue to strengthen the brand perception and credibility through uncompromising commitment to greater disclosure and transparency. 2013 marked great progress in implementing the corporate governance policy that covers the governance principles, board of directors, duties and responsibilities, board and management committees and their terms, internal control and risk management. Barwa continues to refine operational policies, processes and functions eliminating layers and complexities in order to achieve the optimal level of efficiency in its operations. It has also implemented several enhancements to the existing ERP system to improve the speed and efficiency of operations.
The risk culture is embedded in the corporate strategy and is crucial towards efficiently planning and delivering core real estate projects and managing investment portfolio. During last year, Barwa has undertaken a ‘Lessons learnt’ exercise involving the key stakeholders to gather, document and analyze the lessons from the past projects and to serve as a guideline to improve the processes related to planning, execution and delivery of the future projects.
HUMAN CAPITAL
Barwa talent development strategy entails strong focus on professional development solutions for enhancing the core business knowledge, skills and industry best practices. During 2013, Barwa implemented a “Core Business Capacity Building Program” in association with world’s leading professional body in real estate education, the UK based Royal Institute for Chartered Surveyors (RICS) for the executive staff. It also implemented a 360 degree feedback process for the Senior Management, which is a good talent development tool that assist in setting and measuring focused personal and professional development goals.
Barwa is strongly committed to Qatar National vision 2030 and its human development pillar through education, training, learning and continuous development programs for national talents and establishment of internationally recognized standards. Qatarization has reached more than 50% of the total headcount. Most of the Senior Management positions are occupied by Qatari nationals.
CORPORATE SOCIAL RESPONSIBILITY
Barwa is proud of its contribution to Qatar’s society, and will continue to find ways of supporting the community through a range of activities, support and contributions. Believing in its role towards the community, Barwa has offered a number of units in its Real Estate projects for the social associations & corporations in Qatar.
FUTURE PLAN 2014
Barwa has an exciting land bank of opportunities which are being assessed to identify the best use of the company’s assets with the aim of maximizing shareholder value. It is progressing with development of Barwa Al Baraha Phase 2, which is an extension of current Baraha Phase 1. Both phases together will accommodate 53,000 workers and is considered the largest workers accommodation in Qatar and the GCC. The project also reflects Barwa's strategy towards developing innovative solutions and supporting the Qatar National Vision 2030 by contributing towards the country’s urban development. As Barwa continues on the path to develop integrated communities, another project that will be launched soon is Fox Hills North located in the city of Lusail. This project once completed will have about 3000 units. Phase I of this project is Dara, which will be offered to the public this year. Construction works also expected to start on Barwa Al Doha, which will be developed as a strip retail catering to local merchant traders. The project is designed to have quick development time frame and generating strong lease income resulting in a short payback period of 4 years. Barwa acquired the strip of land on the eastern boundary of Barwa Village in Dec 2012, which has good road frontage with high passing traffic and it controls the arrival experience into Barwa Village making the land attractive to retail tenants. During 2014, we are planning to start development of the land as retail space on G+M with residential space on 1st and 2nd floors.
Barwa is continuing its strategic analysis of development opportunities with diversified business models such as BOT, BTO, PPP models, with prospective local clients such as Ministry of Energy, Qatar University, Ministry of Municipality & Urban Planning, Motor City, Qatar Rail and other similar opportunities to ensure a strong pipeline of quality investment prospects that can deliver superior returns for shareholders and ensure sustainable growth.
APPRECIATION
At the end, Barwa Chairman extended his appreciation to His Highness Sheikh Tamim Bin Hamad Al Thani, the Emir of the State of Qatar, for his great support and keenness to enrich Qatar's renaissance and achieve the best results for its people, and His Excellency Sheikh Abdullah bin Nasser bin Khalifa Al Thani, Prime Minister and Minister of Interior, for the continuous support which the government offers to Barwa Real Estate. He also thanked the shareholders and customers for their support, as well as the group employees for their dedication and loyalty.
Shareholders were then requested to approve the Board of Director report and the financial position for 2013, as well as 2014 future plans. The Auditors’ report on the financial statements of the company was discussed and approved as well. Shareholders discussed the Board of Directors’ proposal for profit distribution which recommends a cash dividend of 20% from the outstanding share capital amounting to QR 2 per share, for profit distribution of the year ended 2013, which was approved by all shareholders. Remuneration of Directors was determined and approved, and Price Waterhouse was appointed to audit 2014 financial year, with QR 1,439,000 million fees for their services.
The last point of the Annual General Assembly Meeting agenda was the elections of Board member. 14 applicants competed over 4 seats in Barwa Board of Directors, 1- Sheikh Khalid Bin Khalifa Al Thani – representing Milaha Company, 2- Mr. Mohammad Ibrahim Mohamad Yaqoub Al Sulaiti 3- Mr. Mohammad Abdulaziz Saad Al Saad 4- Mr. Abdullah Abdulaziz Nasir Al Atiyya – representing Aludaid Real Estate Investment Company, were all elected to fill the seats. The new members of the Board of Directors held their first meeting directly after the General Assembly Meeting of the group, and Mr. Mohammad Abdulaziz Al Saad was appointed Deputy Chairman. "
