Mazaya Qatar is Considering a Strategic Partnership with Al Bandary Real Estate

December 23, 2018

Mazaya Qatar Real Estate Development announced its intention to study the feasibility of a merger with Al Bandary Real Estate. Mazaya's Board of Directors agreed to begin the study and issued directives to appoint legal and financial advisors to start feasibility studies, who will then present the final results to the Board to make the appropriate decision.

In response to a question about the importance of the partnership with Al Bandary Real Estate, Mr. Rashid bin Fahad Al Naimi, Chairman of Mazaya Qatar Real Estate Development, said that the transaction is a strategic partnership with one of the leading real estate companies in Qatar. He explained that Al Bandary owns income generating real estate assets that include supporting services for the industry of, alongside a vast experience in construction, and management of mega projects. Moreover, this possible merger is in line with the policy of Mazaya Qatar Real Estate Development, to enter into projects and transactions with considerable income forecast, which elevates the position of the company in the local market through the increase of the value of its assets, which reflects positively on the earnings per share and benefits shareholders.

Mr. Hamad bin Ali Al Hedfa, Board Member and Chief Executive Officer of Mazaya Qatar Real Estate Development, said that such support services would reduce capital and operating expenses, and ensures a better quality of services for customers. The value of the transaction will be determined after the consultants' work has ended, and such transaction is expected to have its positive return, which will result in an increase in the company's profits and assets, and enhances the stability of the company domestically and regionally.

Mr. Mohammed bin Abdul Latif Al Mana, Chairman of Al Bandary Real Estate, said: Mazaya Qatar Real Estate Development is one of the leading real estate developers listed on the Qatar Exchange. Mazaya has been a pioneer in the implementation of BOT contracts based on eco-friendliness and sustainable development standards in the development of its real estate projects. The company's expertise in such investments is an added value to the potential deal between the two companies.

Mr. Mohammed bin Abdul Latif Al Mana continued: the potential transaction will expand the customer base of the two companies and raise the value of their financial leverage in terms of increasing their real estate assets and their unlimited expansion to develop the real estate sector in all its aspects through the launch of new projects and increase the volume of sales and the pace of implementation, the success of the transaction will create a new entity that will be one of the largest players in the Qatari Real Estate sector.

He added that such mergers enhance the chances of involved companies to achieve their strategic objectives and benefit from the opportunities for cooperation. This possible merger will have a positive impact on the Qatari real estate market in terms of rebalancing the market and consolidating companies to become influential, better equipped to compete, and regain consumers’ confidence in the industry.