The Board of Directors at Barwa Real Estate Group has approved the new business plan for the years 2016 – 2020. The plan aims to pursue Barwa developmental path in order to achieve its vision and mission to meet its shareholders’ ambitions by increasing their equity and returns and ensuring sustainable growth.
The new business plan is considered to be the largest since the company’s establishment in 2005 in terms of the number and size of the projects to be developed over the next five years.
The framework of Barwa new Business plan focuses on the following objectives:
- Maximizing shareholders’ equity and achieving sustainable growth through setting a percentage of return on equity of no less than 15% and doubling shareholders’ equity by the end of 2020;
- Increasing rental operating income and doubling the 2014 achieved amount by the end of 2020 through developing and leasing new projects;
- Targeting a QR 15 billion capital expenditure for the next 5 years ending 2020,
- Maintaining a solid capital structure, provided that the Debt financing does not exceed stakeholders’ equity;
- Refinancing Barwa current finance obligations for a longer period with best available terms;
- Maintaining a strong financial position to ensure stable operational and developmental processes.
The new Business Plan is based on the following key goals:
• Focusing on the local market:
Barwa team conducted a study on the local market and determined its real estate needs for the coming years based on the expected population growth, 2022 World Cup requirements and Qatar National Vision 2030. The results revealed promising opportunities within the local market that go hand in hand with the company vision and mission of achieving high returns, with a prevailing lower¬ risk compared to the international market.
• Collaborating with the government of Qatar to serve the country’s and Qatari people’s best interest:
The group will ensure further collaborations with the government through real estate governmental initiatives as is the case with: Madinat Al Mowatir project, Manateq project, and Al Khor Workers Sports Complex.
• Revolving new projects around residential real estate of medium to high rental rates:
The majority of Barwa upcoming projects will work towards developing residential units of medium to high rental rates, which include health, educational and commercial support services, in addition to the Group existing workers residential projects in Mesaimeer, and industrial areas in Al Khor, Mesaieed and Dukhan.
• Utilizing Barwa land bank:
Barwa holds a large land property of 4.5 million square meters in Qatar located in different areas, including: Lusail City, Mesaimeer, New Doha, Wakra, Energy City, Al Khor, Grand Hamad Street and Ras Laffan. The new business plan aims to complete the development of all these plots by 2020.
• Making the most outcome of Barwa assets:
This goal is achieved through a balanced combination of asset development for rental purposes and sales purposes.
These income-generating assets will work towards increasing operating income and achieving sustainable growth. Assets that will be developed and sold aim at supporting the group financial and cash positions and decreasing real estate associated risks.
• Improving current operational efficiency and increasing customers satisfaction:
Barwa currently owns many operational projects that serve as residential units, offices, shops and showrooms in different areas, such as: Al Sadd, Al Wakra, West Bay, Mesaimeer, Sailiya, Al Khor, Mesaieed, Dukhan and Old Salata. The group will work on increasing these projects revenues through targeting and maintaining high occupancy rates and improving customer service.
• Increasing revenues from subsidiaries :
Barwa will work to enhance its subsidiaries compliance with the Group general policy and will reinforce internal coordination to establish harmonious performance and achieve maximal benefit for the Group and its shareholders. Barwa subsidiaries include: Alaqaria, Qatar Project Management, Al Waseef for Asset Management, Guidance Hotels Investment Company and Barwa District Cooling Company. These companies’ activities vary among real estate development, project management, property management and hotel management.
Moreover, the Board of Directors has adopted the company new organizational structure whose content and objective goes in line with the new approved business plan. It consists of improving projects’ management standards and high quality execution within the assigned deadlines. The proposed organizational structure relies on attracting and maintaining necessary professional expertise to fill all vacancies and promote an efficient team capable of managing the company development and achieving the best results.
H.E. Mr. Salah Bin Ghanim Al Ali, Chairman of the Board of Directors affirmed that Barwa Real Estate draws its strength from shareholders’ trust and support, its strong financial position and expertise in the real estate business. All these factors contribute to Barwa promising future, as one of the most prominent companies in the real estate development business, both locally and internationally.
H.E. Al Ali added that Barwa’s Board of Directors have taken upon themselves to fulfill their commitments by increasing the value of the shareholders’ investments in the long term and maintaining continuous growth to their equity in Barwa, which will be achieved with the kind support of H.H. Sheikh Tamim Bin Hamad Al Thani, Emir of the State of Qatar as well as Barwa shareholders’ support and loyal workers’ efforts.
His Excellency also recognized H.H. the Emir’s unlimited support for national companies and extended his appreciation to H.H. Sheikh Abdulla Bin Hamad Al Thani, Deputy Emir of the State of Qatar, H.E. Sheikh Abdulla Bin Nasser Al Thani, the Prime Minister and the Minister of Interior, and to all members of the Qatari government. The Chairman thanked Barwa shareholders and also the Board of Directors for their cooperation and dedication as well as the group’s executive management team for their hard work and dedication during the last few months to develop this business plan. The Chairman has also assured that the BOD will follow up the proper application of this plan to ensure achieving the intended results,
Mr. Salman Al-Muhannadi, Chief Executive Officer at Barwa Real Estate, confirmed that the Board main goal was to increase shareholders’ equities and to achieve sustainable growth. Therefore, the priority was to develop a business plan that aims at achieving higher returns on the Group assets and projects, through developing high standards projects within the assigned budget and schedule, in addition to improving costumers’ service.
It is worth to be mentioned that Barwa total assets amounted to QR 29 billion as at 31 March 2015, and the total equity amounted to QR 18 billion. The group assets vary from investment properties, trading properties, cash and bank balances, finance lease receivables, and advances for projects and investments.
