Sheikh Salman bin Hassan Al Thani, chairman of Mazaya Real Estate Development Company.
Doha: Mazaya Real Estate Development Company aims to upgrade its real estate investment portfolio by QR 500 million, said Sheikh Salman bin Hassan Al Thani, chairman of the company. The real estate development company Mazaya held its Ordinary General Meeting yesterday.
“The company’s strategy is to increase our real estate investment portfolio by QR 500 million. This is already underway, with investments of QR 220 million in fixed income properties over several years and an estimated return of 7%. The portfolio is expected to be completed within the next two years,” Sheikh Salman bin Hassan Al Thani said, addressing shareholders at the AGM. During the meeting, the shareholders approved the items on the agenda.
He added that the company would strengthen its real estate development activities through the sale of homes. The first of these projects will be launched in 2022.
“During the year 2021, there was a change in the composition of the Board of Directors and the General Management of the Company. The new administration, together with the Board of Directors, wishes to develop a clear strategy for managing the Company’s assets and developing its activities,” he said.
“Corrective decisions must be made to reflect the current reality of the Company’s assets, and the Board will continue to work to achieve growth while reducing risk,” he added.
Under the direction of the new management and in order to reduce expenses, the company undertook a major administrative restructuring, which resulted in a reduction in administrative and operating expenses.
In addition, the Company restructured its loans for a longer term and a lower profit. The effects of this restructuring will be reflected in the financial statements for the year 2022.
He said the company would also look to benefit from the growth in the tourism sector as it is currently working on securing visitor accommodation during the 2022 FIFA World Cup period at its properties. The Company will also seek to benefit from the facilities granted by the State to stimulate the real estate market by supporting the growth of tourism and the new policies of golden residence and foreign ownership.
He said that “the company faced several challenges in 2021 which impacted at different levels, and we emerged in 2021 from difficult circumstances. In 2020, the Company received a qualified opinion from the external auditors on two of our assets. This led us to carry out a complete revaluation of our real estate portfolio in order to verify the accuracy of the valuations.
The result of the revaluation resulted in an 11% decrease in the company’s assets with an allocation of QR 272 million in provisions against our real estate investments.
He said that Tala Residence Compound has been leased to Qatar Foundation under a 10-year contract which will end in August 2022. There will be a significant decrease in rental value if it is leased under the current situation. of the market compared to the lease with QF. As a result, a provision has been recorded for a decrease in accordance with international accounting standards, amounting to QR 148 million, which represents approximately 54% of the allocations for the year 2021.
“Regarding the Lusail Marina project which has faced many challenges, we are currently reviewing the terms of the BOT contract with the Qatar Foundation and looking for ways to modify the project activity in line with market developments and changes. real estate in general and the Lusail region in particular,” he said.
“Given the uncertainty about the possibility of continuing the project, a provision has been made for the total book value of the project. In the event of agreement and the launch of the project, part or all of these provisions may be recovered The allocation for the Lusail Marina project represents approximately 26% of the volume of allocations for the year 2021,” he added.
He said the company is also currently carrying out comprehensive maintenance work on the Gloria Hotel. The hotel is expected to be completed and operational before the end of the third quarter. This is to meet the expectations of the tourist market and visitors to Qatar and the general public during the 2022 FIFA World Cup. To reflect the true value of the hotel, particularly during the renovation period, a provision of QR 20 million was made, i.e. approximately 7.5% of the volume of provisions for the year 2021.
For Al Daayen land, in 2020, the land use changed from commercial land to residential land. He said negotiations are underway with relevant authorities to either restore the business license or replace it with another land suitable for development.
Shareholders will be notified of the outcome once received. In order to cover any impairment, a provision of QR 30 million has been made, approximately 11% of the size of the provisions for the year 2021.