Continue reading Qatar First Bank acquires LULU Messila hypermarket building with its intention to establish a strong local presence in the Qatari Market" />
Qatar First Bank (QFB), the first independent Shari’ah compliant bank authorized by the QFC Regulatory Authority (QFCRA) and a listed entity on Qatar Stock Exchange (QSE: QFBQ), announced the completion of QAR 262.5 million acquisition of the 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 .
HE Sheikh. Faisal bin Thani Al-Thani, QFB Chairman commented“This Sharia-compliant acquisition is an imperative phase for QFB that further strengthens its presence and position within the local Sharia-compliant real estate investment market in line with its diversification strategy in both asset class and geography. The acquisition also highlights QFB’s commitment to invest in quality real assets in the Qatari market as well as QFB’s renewed focus on direct ownership of Qatari real estate as new regulatory easements for Qatar Financial Centre (QFC) registered companies come into play.”
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). Since it opened its first hypermarket in 2000, Lulu has gathered a strong and loyal client base, and the chain has recently celebrated its exponential growth by opening its 14th store in Doha.
Qatar First Bank’s decision to acquire the LuLu Messila Hypermarket building stems from its rigorous asset screening process. To start, investors in this product offering will enjoy an above market annual yield in a defensive asset by nature while simultaneously positioning themselves for an exit in an asset that has outperformed irrespective of the macroeconomic factors it operates in.
Commenting on the acquisition, QFB’s ACEO Abdulrahman Totonji“This acquisition cements QFB position as a serious contender not only in the US Real Estate Sharia-compliant investment market, but also in the domestic market. QFB is very selective when it comes to deal selection and this local Qatari real estate investment opportunity checked all the investment and risk boxes. QFB has a healthy pipeline of deals that not only supports the Bank’s unique market position but also delivers value for all of our clients and shareholders.”
QFB concluded a remarkable 2020 despite the year being one of the most economically challenging the world has recently experienced. As a result of QFB’s prudent risk management framework and diversified investment portfolio, the Bank continues to thrive amid the economic uncertainties. In 2020, QFB completed a few significant acquisitions in the US real estate market namely The Grand 2 at Papago Park Center, BSN Sports’ HQ Building “Varsity Brands” located in Texas, and 90 North Corporate Campus located in Seattle Washington while successfully exiting its second Sharia-compliant aviation investment deal.
As always QFB continues to hold true to its commitment to present the best in class, highly-vetted, cherry-picked Sharia-compliant investments to its clientele and aims to pursue further deals in Qatar going forward as it believes the Country is well-positioned for prosperous years to come.