Marina Mall project part of a 30 year agreement between Mazaya and Qatar Foundation.
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Mazaya Qatar Real Estate Development, the Shariah compliant real estate company, will announce tenders for the Marina Mall project, which will be constructed in Lusail City.
The company is also set to ink a new deal next week to sell one of its properties, Gloria Hotel, located along Al Safilya Street, a senior company official said on Wednesday.
“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,” said Seraj Al Baker, CEO of Mazaya.
The Marina Mall project is part of a 30 year agreement between Mazaya and Qatar Foundation to develop and manage the $274.6 million shopping centre, on a build, operate and transfer basis. Once completed, the project will extend over 57,605sqm, with two floors and a ground floor.
Al Baker added that as part of its expansion plans, the company had acquired a 30,000sqm plot of land near Doha Festival City, next to the recently opened IKEA store. This would be 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,” he explained.
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 $274 million in 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% to 12% 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, a local paper.
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 $46.6 million 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 $82.4 million,” 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.