Qatari developer to sell $697 million worth of land to the government

Qatar's Barwa Real Estate says it will sell land worth QR2.54 billion ($697.4 million) to the government, marking the latest state assistance which the indebted developer has received.

In exchange for a plot in Lusail City, Barwa received QR1.04 billion ($285 million) in cash, while the government also settled QR1.5 billion ($411 million) of the developer's bank loans, according to the bourse filing. The size of the plot was not disclosed.

The sale was agreed on September 30 and will have a positive impact on the company's financials, although Barwa did not specify which quarter the deal would be logged in.

It is the latest bailout move for the company, which has struggled with its debt burden despite a massive building boom in the Gulf state related to new infrastructure and preparations to host the 2022 soccer World Cup.

Qatari Diar, the real estate arm of Qatar's sovereign wealth fund, stepped in with financial aid last year, agreeing to buy some of Barwa's assets for $7.1 billion.