Barwa Real Estate posts sharp fall in H1 net
Doha, August 1, 2013
Barwa Real Estate, the struggling Qatari property firm which received $7.1 billion in financial support from the state in June, posted a slump in first-half net profit on Thursday.
Qatar's largest listed property developer made a net 199.2 million riyals ($54.7 million) versus 593.7 million riyals a year before, the company said in a statement on the bourse website.
Barwa, 45 percent owned by state real estate firm Qatari Diar, received financial support in June when Diar bought its assets for $7.1 billion.
Property firms in Qatar are struggling even as the country is pouring billions of dollars from its oil wealth into infrastructure in preparation for hosting the 2022 Soccer World Cup.
The developer had notched up liabilities of about 37 billion riyals ($10.2 billion) at the end of 2012 due to over-expansion.
Barwa laid off about 90 employees in a restructuring move last year. It also sold assets worth 16 billion riyals ($4.4 billion) in Qatar and Egypt to pay down loans.
Barwa has properties in France, Switzerland and the United Kingdom and focuses on retail, office, hospitality and residential developments. - Reuters