United Development Company (UDC) has earmarked QR5.5bn to be invested in the next five years for existing and planned projects inside The Pearl-Qatar and its latest real estate project, Gewan Island, UDC chairman Turki bin Mohamed al-Khater said at the company’s Annual General Assembly held yesterday.
Aside from the Gewan Island and The Pearl-Qatar projects, the QR5.5bn will be utilised for key developments, such as the Giardino Village, Al Mutahidah Towers, and Floresta Gardens. UDC has also revealed the construction of the United School International and a golf course inside Giardon Village, as well as a 100 to 150-bed hospital.
“In our latest business plan, UDC’s cumulative investment in these projects alone over the period of 2019 to 2023, is estimated to be QR5.5bn. This demonstrates both their significance to The Pearl-Qatar and our strong commitment to the development of sustainable projects across Qatar,” said al-Khater, who presided over the general assembly.
He said in 2018, UDC continued to focus on completing the development of its flagship projects, The Pearl-Qatar, “which is the premier residential, commercial, and tourist real-estate development in Qatar.”
Al-Khater noted that the completion of “numerous milestones” reflected positively on UDC’s financial results in 2018.
“For 2018, UDC posted a net profit of QR544mn and revenues of QR1.6bn, with the net profit attributable to equity holders of the parent standing at QR501mn and basic earnings per share of QR1.41,” he said.
“These financial results, given the challenging conditions under which they were achieved, demonstrate that The Pearl Qatar is a viable business model that can sustain solid financial results in challenging times,” al-Khater continued.
He stressed that UDC’s business strategy remains focused on creating opportunities and partnerships, achieving growth, minimising risks, and sustaining progress. “Discussions are currently under process with the authorities concerned to undertake real estate projects at other districts in Qatar,” he pointed out.
According to UDC president and CEO Ibrahim Jassim al-Othman, recurring revenue generated from the leasing of office, residential, and retail units was enhanced in 2018. He said the number of residential properties under lease increased by 31% year-on-year (y-o-y) and the volume of office space under lease at UDC Tower reached 21%, while the volume of retail areas under lease “is steadily maintained at 58% y-o-y.
“In addition to these increases in occupancy, the number of vehicles entering The Pearl-Qatar rose from 11mn in 2017 to 13mn in 2018, a clear sign of the growing footfall. The Pearl-Qatar is becoming an increasingly popular destination for office, residential, and retail tenants to live and work,” al-Othman said.
He said the Giardino Village project is set to be completed by 2021. UDC completed the construction of the Al Mutahidah Tower’s connecting bridge in the second half of 2018. The project is scheduled to be completed by 2020.
Floresta Gardens is scheduled to be completed by 2021, and Gewan Island, which is adjacent to The Pearl-Qatar, is scheduled to be completed by 2022, al-Othman pointed out.
Meanwhile, UDC’s ordinary general assembly yesterday approved the distribution of cash dividend, representing 10% of share capital and equivalent to QR1 for each share.