QFBQ: Opening Price: 1.868 | High: 1.91 | Low: 1.868 | Closing Price: 1.892 | Volume: 1,361,281 | 0.793 % NEWS: Qatar First Bank Achieves the highest half yearly Net Profit of QAR 41 million over the last 5 years
Investment Management

Highlights

10 Total investments
to date
3.6 Billion-QAR
Total AUM
100% Deals in which
QFB is a co-
investor
1.2 Billion-QAR
Equity raised
8% Target IRR to
client
7% Target returns to
client

As part of QFB’s transformation of its business model from an asset based model to fee income-based model QFB focused its efforts on more liquid US real estate market. The philosophy of the Investment team is to pursue deals distributing large cash on cash after tax to its investors while offering stability.

Real Estate Asset Classes

QFB offers exclusively Commercial Real Estate transactions for syndication, which are typically larger transactions where both sellers and buyers are established international institutional firms. The investment management program targets acquisition of :

  1. Office Buildings – Trophy or Class A assets leased to a single tenant, on a NNN or Absolute Net basis.
  2. Multifamily Residentials – Core or value-add Class A and B assets
  3. Industrial Assets – Warehouses, factories, last mile delivery terminals, etc.
  4. Light value-add multi-tenant offices

Real Estate Markets

The program seeks to identify locations within the US where shifts of demography and strong fundamentals are in place, such as the “Sun Belt”. Traditionally labelled “Red states” are also preferred due to their more tax and corporate friendly approach to business.

Key focus states for QFB remain Nevada, Arizona, Colorado, Texas, Georgia, Florida, North Carolina, Minnesota, Washington, Ohio. Within those states, QFB look for Tier I or Tier II locations which are generally the large metropolitan areas and state capitals.

QFB’s most recent offerings and upcoming offerings are in Seattle, Washington; Dallas, Texas; Phoenix, Arizona; Houston, Texas and Columbus, Ohio.

Type of Office Leases

As the program aims to offer stable cash flows to its clients, the bank favors single-tenant office buildings let on a long-term NNN or Absolute Net basis.

Under such lease terms, the tenant is responsible for maintenance of the property, including all real estate taxes, building insurance, and repairs. The landlord (QFB and its clients) will only be responsible for structural repairs to the properties.

Distributions

By primarily looking for unbreakable, untransferable and unencumbered leases with 10 to 20 years remaining, QFB’s investments mitigate the releasing risk associated with expiry of lease terms and manages to offer stable distributions to its investors with potential upside upon exit.

Tenants

For office and industrial properties, the main risk is the financial strength of the in-place tenant. When it comes to credit ratings, the program is comfortable with both investment grade and sub-investment grade tenants but in the latter case aims to mitigate the risk of default by securing additional corporate guarantees from the parent company, such as letters of credit covering several years of rent.

90 North Corporate Campus –
Seattle, Washington

QFB completed a $117 million off-market acquisition of 90 North, a four-building, 262k-square-foot office campus located in Bellevue, Washington in January 2020. The property is fully rented by two tenants T-Mobile and Mindtree.

The 90 North Corporate Campus is a four-building class “A” campus property situated on approximately 20 acres and strategically located at Seattle, Washington. The campus is ideally located in Eastgate, the heart of the I-90 suburban corridor which provides prime freeway access, proximity to the best executive housing in the region, a strong roster of corporate tenants, and a low vacancy rate. The campus features an on-site food court, café, fitness center, conference facility, courtyard with outdoor seating and recreational activities, and ample surface parking.

BSN Sports’ HQ Building “Varsity Brands” – Texas

QFB completed a USD$41million acquisition of Varsity Brands, a three story, 135,0000 square foot building in Texas, USA in august 2020.

Varsity Brands currently serves as the headquarters for BSN sports, which is the leading marketer, manufacturer and distributor of sporting goods apparel and equipment in USA. BSN Sports, markets and distributes its products to over 100,000 institutional and team sports customers in colleges and universities, middle and high schools, and recreational programs throughout the United States via catalog, e-commerce, and direct sales.

The Property expands within a land size of 8.41 AC with 600+ plus employees working including sales, customer support, and corporate executives. Property was awarded LEED silver certification in early 2019 and is located 11 miles north of downtown Dallas and within the larger Dallas- Fort Worth metropolitan area.

Grand 2 at Papago Park Center – A Class A Office Building Fully Leased by DoorDash Inc.

QFB acquired The Grand 2 at Papago Park Center, a 358,800 square foot newly completed state-of-the-art Class A office building that is 100% leased to Door Dash under a 15-year triple net lease (NNN), located in Tempe, Arizona – United States, part of the metro Phoenix market.

Developed and managed by Lincoln Property Company, The Grand 2 is comprised of a nine-story, best in class, LEED Silver certified building built in 2020 and a seven-level parking structure providing 1687 parking spots. The Grand 2 has the capacity to house approximately 2000 DoorDash employees, making it the company’s largest facility. Located within Papago Park Center, a 350-acre, mixed use development spanning 2.6 MSF, the area is a hotbed for multifamily development with 1,316 units and the exquisite high-end Papago Hills retail center, providing a plethora of on-site restaurants for tenants.

DoorDash is a highly renowned American technology company founded in Palo Alto, California, “Silicon Valley”.

HQ of “Huntsman International” Texas

QFB completed the acquisition of Waterway Plaza I in January 2021 , a class A+ office tower spanning more than 223,0000 square foot located in suburban Houston, Texas, USA.

Waterway Plaza I is an immaculate and truly stunning Class A+ building located in the Woodlands, the most desirable suburban area of Houston. A testament to its architectural merits and spectacular design, the office tower was awarded the 2012 TOBY (“The Outstanding Building of the Year”) award for best mid-rise. The glass and aluminum façade of the 9-story property offers an incredible panorama of the Woodlands Town Center and its penthouse with full-height glazing was designed to maximize the views of the water canal, offering an expansive vista of Woodlands Waterway and its wooded surroundings. Impeccably maintained and constantly improved by its current tenant in place since 2004, Waterway Plaza I serves as the headquarters for Huntsman International, a multi-billion manufacturer of chemical products and a Fortune 250 company. Huntsman, one of the leading US marketer of performance products and adhesives, counts among its customers the likes of BMW, Procter & Gamble and Unilever.

LULU Messila hypermarket building, Doha

QFB completed a QAR 262.5 million acquisition of the Lulu retail hypermarket building in Messila thereby cementing the Bank’s presence within the local real estate market.

The property is currently fully occupied by Lulu as a fully fledge Hypermarket located at Jassim Bin Hamad Street south of Madinat Khalifa – Messila, Doha with a built up area of 44,611 sqm. Built over 4 floors, the property offers a total of 299 parking slots providing ample convenience to Lulu for a successful retail hypermarket operation. The property was built to suit in 2016 and is 100% occupied under a triple net (NNN) 20-year locked lease, with 16 years.

LuLu Hypermarket Trading Co. W.L.L, the fastest growing retail chain in Qatar, has developed a dominant position in the retail sector, providing a unique shopping experience to its valued customers specializing in foodstuff and consumers staple goods – One stop shop (food, produce, electronics & home appliances).

Healthcare Technology Company Headquarters, Ohio

QFB acquired of phase 1 of Healthcare technology company Headquarters in Columbus, Ohio in the USA in May 2021.

This acquisition marks QFB’s 7th sharia compliant real estate investment in the Unites States and comes as a significant addition to the Bank’s presence in the US real estate market.

The newly acquired property is a fully built-to-suit 218,000 square foot trophy office building completed in 2021 with 100% leased on a 10-year NNN lease. The QFB-acquired building will serve as the first phase of the corporate campus for Healthcare technology company, with the second phase planned to be completed by the fourth quarter of 2022.