20/11/2017 05:57 AST
QInvest, Qatar’s leading private investment group and one of the region’s most prominent Islamic financial institutions, yesterday announced the successful exit of a real estate mezzanine murabaha transaction in the US. The transaction, backed by a diversified portfolio of 17 assets, generated an IRR (internal rate of return) of 14.9 percent (representing a 1.23x multiple) over 20 months.
Tamim Hamad Al Kawari (pictured), Chief Executive Officer of QInvest, 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.”
Craig Cowie, Head of Real Estate Investments & 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 $1bn of QInvest’s balance sheet and advised on transactions with an aggregate value of over $4bn. We are committed to providing effective financing solutions for real estate transactions in Qatar and in international markets, such as Continental Europe, UK and the US.”
Since the beginning of the year, QInvest’s Real Estate team has completed the acquisition of two real estate assets in the United States, both as part of the bank’s US multifamily residential investment strategy. The team also made investments in Spanish and Scottish development assets. In 2017, QInvest fully exited the St Edmund Fund, an investment in a prime real-estate development in Central London, which delivered a realized net return of 22 percent, and is finalizing a forward sale of a redevelopment project in Luxembourg, which is anticipated to net an over 2x equity multiple upon completion.
Al Kawari added: “Alongside our achievements within the real estate sector, and in response to the growing investor demand for more innovative and income-generating products, we have successfully launched the second version of our QInvest SQN Income Fund. This series of products offers shareholders and investors a unique opportunity to access income generating assets in developed markets. The first version of these funds was oversubscribed. It aims to pay out a net yield of 7 percent per annum on a monthly basis and has a targeted IRR of 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.”
The Peninsula
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