Barwa Real Estate Group and Economic Zones Company (Manateq) will sign an agreement for a warehousing project as part of plans to diversify investments and increase Barwa’s presence in the local market, Group CEO Salman Mohamad al-Muhannadi has said.
Al-Muhannadi told Gulf Times that the warehousing complex would consists of a 253,000sqm plot for warehouses, including support functions, ancillary building, and other infrastructure.
“We have already completed the tender process and valuation, and we are about to sign the agreement with Manateq; the developments of this projects will be announced in the next two weeks.
“This will be followed by announcements for the ‘Dara’ (project in Lusail), ‘Barwa Village’, and ‘Barwa Doha’ projects. The sequence of these projects for this year is quite heavy,” said al-Muhannadi, who added that projects are part of Barwa’s QR15bn capital expenditure for the next five years.
Manateq, which was established in 2011 by the Ministry of Business and Trade, has three special economic zones under its wing and were geared to facilitate private sector growth and promote manufacturing in downstream heavy and light industries.
The zones include the 4.01sq km Ras Bufontas, Um Alhoul (33.52sq km), which broke ground in March 2015, and Al Karaana (48sq km), the largest of all three, which is expected to provide opportunities to grow specialised industries and logistics zone.
Al-Muhannadi also announced updates on the QR1.5bn Motor City project, aimed at providing showrooms for used cars, including related facilities and services in the suburbs of Rawdat Rashid along Salwa Road.
“We have revised the entire development schedule, and we have decided that it would be unwise for us to develop the project in one go; to do so would cause a big burden on the retail development, which is why we are developing it in phases,” he said.
Al-Muhannadi said tender for the first phase of Motor City project, expected to be completed by mid-2017, was launched yesterday.
“We are currently receiving calls from second-hand showroom owners, which reflects how big is the demand for this project and hopefully, we will try to meet their expectations.
“Barwa is also obliged to provide them (showroom owners) the best environment and reasonable rent rates. We have already held discussions with them, including talks around the level of rent, which they consider as ‘comfortable rates’,” he said.
Aside from used car showrooms, al-Muhannadi said the Motor City project will offer other services such as car rentals, warehouses, workshops, and maintenance centres.
Asked if Barwa has overseas expansion plans, al-Muhannadi said there was reluctance from the group, but remains open to possible opportunities.
“We are a bit reluctant on expansion projects abroad, with the exception of Saudi Arabia in terms of housing; but we are focusing on Qatar. Do we have an existing investment plan there (in Saudi)? No, but we are examining the market and there is an opportunity. We will examine it and if it makes sense, we will execute and announce it,” he added.
Barwa holds a 4.5mn sqm land property in Qatar in different areas as Lusail City, Mesaimeer, New Doha, Wakrah, Energy City, Al Khor, Grand Hamad Street, and Ras Laffan.
Al-Muhannadi: Increasing Barwa’s presence in local market. PICTURE: Anas Khalid.
