Doha,April,05: Mazaya Qatar Real Estate Development, the Shariah-compliant real estate company, is slated to announce tenders for its ambitious project, Marina Mall, to be constructed in the upcoming Lusail City
The company is also set to ink a deal next week to sell one of its properties, Gloria Hotel, located along Al Safliya Street, a senior official of the company said yesterday.
CEO of Mazaya Qatar, Seraj Al Baker, said: “We are expecting to strike a deal to sell Gloria Hotel next week. But we are still negotiating; it is yet to be finalised… And as far as the Marina Mall is concerned, we are in the tendering stage to choose a main contractor, which will be announced within a month.”
Marina Mall project is part of a 30-year agreement between Mazaya and Qatar Foundation to develop and manage the QR1bn shopping centre, on a build, operate and transfer (BOT) basis. Marina Mall, on completion, will extend over 57,605 sq m, on two floors plus the ground floor.
Al Baker said that as part of its expansion plan, the company has acquired a piece of land about 30,000 sq m near Doha Festival City, next to the recently opened IKEA Store, for the development of a commercial complex.
“The project will be a multi-use commercial complex including a gas station, hotel, offices, and residential units. Currently, we are at the discussion stage with the local municipality,” said he.
Mazaya Qatar, listed at the Qatar Exchange, acquired Gloria Hotel a couple of years ago as part of its strategy to diversify its income generating portfolios and assets.
The company, with over QR1bn capital, was risk averse about venturing into new real estate projects due to market prevailing conditions after 2008, and its deposits in banks were not yielding good returns.
“Although, the property was yielding about 10 percent to 12 percent returns on investment, we believe that the asset has now matured for us, it has served our purpose, and we are selling it,” Al Baker told The Peninsula.
Although he didn’t disclose the exact amount of the deal and the name of the buying party, according to earlier reports, the company had received an offer worth QR170m to buy one of its investment properties.
“This is a well studied part of our work. We have not funded this project. But now it is operating well, and valued at more than QR300m,” he added.
“I cannot tell you much about the hotel deal, because we are still negotiating. Somebody might misconstrue it, and the buyer may get upset. I can only say that I have to send some documents today and hopefully the deal will close next week. We do not have to sell anything. The company is very liquid. We have not yet exhausted our capital, but if we get a right price even my desk is there for sale,” he said.
In addition, he also shared many other ideas that are being cooked in the company to enter into projects that would not only provide steady income but also have least amount of risks involved.
“We are not only limited to building things on ourselves, we are always open to new ideas and opportunities. As part of our philosophy to mitigate risks, we are now looking forward to join hands with schools, hospitals to work together on a BOT model for a win-win situation,” said Al Baker.
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