Qatar's Barwa Real Estate said on Thursday it will close a merger with Qatar Real Estate Investments Co. (Alaqaria) in 4 to 6 months, creating a firm with assets of 30 billion riyals ($8.25 billion).

"We expect the merger to take place within 4 to 6 months," said Tamer Khedr, Barwa's chief financial officer. "The combined total assets will not be less than 30 billion Qatari riyals."    

Qatar's government ordered the two companies to merge in January as part of efforts by Gulf Arab states to help their firms weather the global economic downturn.

Real estate developers in the region are shedding jobs and cancelling projects as property prices drop and credit tightens.

"Qatar Real Estate has lots of assets and a very steady cashflow, which mainly comes from its contracts with Qatar Petroleum," Khedr told Reuters.

Barwa, an affiliate of state-owned Qatari Diar, and Qatar Real Estate, in which the government owns a minority stake, have a combined market capitalisation of $1.8 billion, according to Reuters data.

Khedr said it was too early to say whether the merger will be a share or a cash deal. Qatar Real Estate has appointed JP Morgan as financial adviser for the merger.

The merger is the latest in a series of deals in Qatar, the world's largest producer of liquefied natural gas (LNG).

Qatar's Ezdan Real Estate Co., the country's largest property developer by market capital at around $2.6 billion, said on March 29 it is eyeing a merger with the Group of International Housing Co. - Reuters