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Tribune News Network
Doha
QInvest, Qatar's leading private investment group, has successfully exited a real estate mezzanine murabaha transaction involving 17 assets in the US, generating an internal rate of return (IRR) of 14.9 percent over 20 months, the company announced in a statement on Sunday.
Tamim Hamad al Kawari, QInvest CEO, said,"While 2017 has been notable for adverse market conditions in the region, QInvest has witnessed continuing investor appetite for the international real estate sector, with particular interest in the US market.
"A return of almost 15 percent over 20 months reflects a strong return for a mezzanine transaction given the conservative level of risk.
"Across the year, we have seen strong performance within our real estate division demonstrating the sustainability and resilience of our business strategy and professionalism of our team. We will continue to invest in key global markets on an opportunistic basis as we focus on delivering sustainable value for clients and shareholders."
"In response to the growing investor demand for more innovative and income-generating products, Qinvest has successfully launched the second version of our QInvest SQN Income Fund," Kawari noted.
"This series of products offers shareholders and investors a unique opportunity to access income generating assets in developed markets," Kawari said.
The first version of the funds was oversubscribed, aiming net yield of 7 percent per annum on a monthly basis, and targeting IRR between 8 percent and 9 percent, with a tenure of 5 years.
"We also have a strong track record in managing funds via our managed account platform QMAP, as well as managing local equity funds. Currently, we are developing a series of attractive products, including those targeting local investment opportunities, that we plan to announce in coming months," Kawari added.
Craig Cowie, Head of Real Estate Investments and Advisory at QInvest, said,"The real estate market continues to be a strategic priority for QInvest. As part of our strategy of originating new investment opportunities, across both the debt and equity segment, we have closed several real estate transactions this year. The latest is the mezzanine murabaha of a diversified portfolio of 17 US assets."
"Since inception, the real estate division has invested over $1 billion of QInvest's balance sheet and advised on transactions with an aggregate value of over $4 billion. We are committed to providing effective financing solutions for real estate transactions in Qatar and in international markets, such as Europe, UK and the US."
Participating in a recent flagship industry event,"Doing Business and Investing in the US and Qatar Forum", Vaughn Weatherdon, Director at QInvest's Real Estate division, shared his insights and experience regarding investment opportunities in the US real estate sector, a market in which QInvest has a strong, long-term track record.
Speaking to business leaders and decision makers, Weatherdon described QInvest's strategy regarding US property given investor preferences and where optimum returns can be made. Since the beginning of the year, QInvest's real estate team has completed the acquisition of two real estate assets in the US, both as part of the bank's US multifamily residential investment strategy. The team also made investments in Spanish and Scottish development assets, the statement added.
