‘aggressive expansion' in qatar

Qatar's largest developer, Ezdan Real Estate Co, is planning to sell some of its real estate portfolio to generate funds for new projects...

The developer has several billion-dollar prospects over the next five years and is looking to free up capital to finance these new projects.

New schools, hotels, residential units and hospitals could all be in the pipeline for Ezdan. Samer Wahbeh, the Deputy Chief Executive Officer for Ezdan, said that the developer is involved in an "aggressive expansion plan".

Ezdan is a healthy company, nearly doubling its net profit in the first quarter of 2009, and is therefore in a position to expand its projects. Although the company's property sector has suffered from the economic downturn, the general growth for the company is favourable.

In order to finance the real estate projects, Mr. Wahbeh is in talks with a real estate investment trust (REIT) in Malaysia, for the sale of about four per cent of the company's portfolio. He said, "We are looking at good opportunities to sell part of our property at the right price," according to Reuters.

Ezdan is also considering similar negotiations with REIT companies in Singapore and the Dubai International Financial Centre. Qatar needs to aggressively pursue property development and infrastructure projects if it is going to break away from a reliance on oil. Currently 60 per cent of Qatar's gross domestic product is made from the oil and gas industries.

Further plans for Ezdan include taking over a major competitor, International Housing Group.

Mr. Wahbeh is positive about the move. He said that a continuing demand for middle-income homes in the country will enable his company to successfully negotiate the market and invest in new real estate projects.

Source: www.hotproperty.co.uk