Barwa Real Estate has bought a vacant plot of land in Riyadh, Saudi Arabia, for SR659.28mn.
The plot at Janadriyah area in Riyadh is of 2.2mn sq m, Barwa said in a communique to the Qatar Stock Exchange.
This deal is aligned with Barwa’s five-year plan, and in line with the company’s previous announcement that it will be exploring the potential investment opportunities of real estate market in Saudi Arabia, which “supports the company’s land bank and increases the shareholders’ sustainable return.”
The Master Plan includes a full residential and commercial district.
Barwa aims to complete the construction of infrastructure works related to the project’s Master Plan within the fourth quarter of 2018.
Barwa Real Estate, which is one of Qatar’s largest listed developers, reported a near-trebling of second-quarter net profit, according to Reuter’s calculations.
Barwa made a net profit of QR550mn in the three months to June 30, Reuters had earlier calculated based on previous financial statements in the absence of a quarterly breakdown.
This compares with a profit of QR193mn in the prior-year period, its data shows.
Barwa made a net profit of QR1.20bn in the first half of 2016, compared with QR3.45bn in the corresponding period of last year, a bourse statement showed.
Qatari Diar, a real estate-focused unit of sovereign wealth fund the Qatar Investment Authority, owns 45% of Barwa.