A clarification from Masraf Al Rayan in regard to the sale of its stake in Seef Lusail Real Estate Development Company

Doha, 15 July 2014 Masraf Al Rayan is pleased to announce to its shareholders and investors that the bank made its first disclosure of the sale of its 50% equity stake in Seef Lusail Real Estate Development Company, which was released and published on 14/7/2014 in accordance with its disclosure policy and a commitment to make an immediate disclosure upon signing of the sale purchase contract. The Bank did not violate any rules or regulations as set out by the concerned regulatory authorities as Masraf Al Rayan's announcement was reported to the Qatar Financial Markets Authority on 13/7/2014 after trading hours.

However, based on the guidance of the Qatar Central Bank and the Qatar Financial Markets Authority, the Bank would like to clarify that Seef Lusail Real Estate Development Company LLC, with CR number 36198 issued on 26/6/2007, which owns Lusail Waterfront real estate was equally owned by Masraf Al Rayan and Qatari Diar Infrastructure Company. Masraf Al Rayan has now sold fully its 50% stake in the Seef Lusail Real Estate Development Company LLC to two investors as follows:

  • 49% of Seef Lusail Real Estate Development Company equity to Qatari Diar Infrastructure Company and
  • 1% of Seef Lusail Real Estate Development Company equity to Qatari Diar Real Estate Investment Company.

Accordingly the new ownership in Seef Lusail after the sale is as follows:
  • 99% of Seef Lusail Real Estate Development Company will be owned by Qatari Diar Infrastructure Company
  • 1% of Seef Lusail Real Estate Development will be owned by Qatari Diar Real Estate Investment Company

The transaction value amounts to QR 1,533,041,170 resulting in a gain of approximately QR466 million to Masraf Al Rayan over 3 financial years. The gain from this transaction will not impact the financial results of Masraf Al Rayan for the first half of 2014.
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