• Barwa Real Estate signs the leasing contract of Mustawdaat project in Umm Al-Shahrain
• The project is one of the government's initiatives to fulfill market demands and support overall price reduction
• The project is one of the fruitful outcomes of partnership with the Government of Qatar
• The lease period is 10 years and a half with a total rental value of QR 755 million
• Completion of the development of the project in record time with a total cost of QR 450 million contributes to maximize returns and sustainable revenue growth for the shareholders of the Group
Barwa Real Estate Group has announced the signing of the leasing contract of its Mustawdaat project in Umm Shahrain area, with Mohammed Hayil Group for Trading and Contracting WLL.
Mr. Salman Bin Mohammed Al Mohannadi, the Group's Chief Executive Officer signed the contract on behalf of Barwa with Mr. Mohammed Hayil Al Omar, the Chief Executive Officer of the tenant Company. Signed at Barwa Headquarters, the contract term is for 10 and a half years, starting from October 1, 2017, during which the Tenant shall operate, maintain and lease the project. The total rental value is QR 755 million over the duration of the contract term.
Mustawdaat project comes as one of the Government of Qatar's initiatives to meet the market demands of storage areas to fulfill the needs of Qatar's citizens and residents at affordable costs so as to support overall price reductions.
The development of this project has been awarded to Barwa Real Estate Company as one of four warehousing parks that have been awarded to a number of developers in 2015. Sponsored by Manateq, these projects offer an ideal solution for logistics activities and were awarded for the developers to run a (Build - Run- Transfer) model, whereby the facility is designed, constructed, operated and maintained by the developer. It will be subsequently transferred to Manateq following a 25-years concession period.
Located in Umm-Shahrain, the project extends over a plot area of 500,000 square meters and provides four types of low-cost warehouses, including dry and air-conditioned warehouses and chilled warehouses as well as freezer warehouses on a total plot area of 259,446 square meters. The project, which has a total built up area of 273,113 square meters, includes the construction of a residential compound for the employees, offices, 38 retail shops and a mosque, in addition to all the necessary infrastructure, including the construction of 13 substations, internal roads, loading and unloading areas and networks for potable water, fire, irrigation, sewage and their respective tanks. Furthermore, it will feature surveillance cameras, pump rooms and security rooms.
Mr. Salman Bin Mohammed Al Mohannadi, Chief Executive Officer of Barwa congratulated the shareholders of the company for signing the leasing of the entire project, which reflects the commitment of all employees of Barwa to maximize the shareholders' equity and increase the returns. Mr. Al Mohannadi stated that the development of the project was completed in record time at a cost of QR 450 million, including the cost of design, supervision, construction works, infrastructure and all related services. Al-Mohannadi also extended his gratitude to Barwa's Board of Directors, headed by His Excellency Mr. Salah Bin Ghanem Al Ali for their continuous support and vision towards achieving sustainable growth of the shareholders' equity.
Al Mohannadi stressed: "Mustawdaat project is one of the fruitful outcomes of the partnership with the Government of Qatar which is a source of pride to all the employees of Barwa Group and it is also an incentive for all of us to do our utmost so as to realize the responsible role of Barwa as one of the pillars of development of our beloved country in light of Qatar National Vision 2030 and under the sponsorship of His Highness Sheikh Tamim Bin Hamad Al Thani, the Emir- God protect him.
Al Mohannadi said: "The aim of Mustawdaat project is to meet the demands of the Qatari market for the logistics areas and modern storages at reasonable prices that help reduce the overall cost of providing goods and products to consumers".
Al-Mohannadi also expressed his gratitude to His Excellency Sheikh Abdullah Bin Nasser Bin Khalifa Al-Thani, Prime Minister and Minister of the Interior, H.E. Sheikh Ahmed bin Jassim Al-Thani, Minister of Economy and Trade and Chairman of Economic Zones Company (Manateq) and also for Mr. Fahad Rashid Al Kaabi, Chief Executive Officer of Manateq for their continuous support during the development phases of the project.
It is worth mentioning that Barwa Real Estate announced in May 2016 the awarding of the construction of Mustawdaat project and it is expected to be fully completed in the third quarter of this year.