Continue reading Qatar First Bank Announces Acquisition of The Grand 2 at Papago Park Center – A Class A Office Building Fully Leased by DoorDash Inc." />
Qatar First Bank LLC (QSE: QFBQ) today announced it has 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 DoorDash under a 15-year triple net lease (NNN), located in Tempe, Arizona – United States, part of the metro Phoenix market.
HE Sheikh. Faisal bin Thani Al-Thani, QFB Chairman commented: “This transaction cements QFB’s new fee-based income business model, implemented to enhance QFB’s investment management strategy, and further strengthens its Shariah-compliant US Real Estate Portfolio. The new strategy continues to invest in handpicked Sharia-compliant real estate assets that provide highly stable income to investors as well as upside potential.”
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”. Doordash went public on the second week of December this year and priced its IPO at $102 per share, well above initial expectations. The stock opened for its first day of trading on December 09 at $182 and closed at 189.51, 85.8% above its IPO price reflecting a market value of $60bn. DoorDash was founded by Stanford University Students in 2013 and has come a long way to become the leading on-demand prepared food delivery service that uses proprietary data and logistics services. DoorDash serves 4000 cities and operates in the United States, Canada and Australia.
In 2019, DoorDash’s revenue was $900 million and has been gaining market share in 2020 despite CoVid-19. DoorDash took the first spot of the food delivery in the USA in terms of total industry sales reaching 48% as of June 2020, surpassing the likes of Uber Eats, Grubhub and Postmates. Furthermore, DoorDash recently announced a multiyear marketing partnership that makes it the official on-demand delivery platform of the National Basketball Association “NBA”, WNBA and NBA 2K League.
DoorDash’s revenue for the first nine months of the year rose to $1.92 billion, compared with $587 million in the same period in 2019, according to its filing prospectus. It had 543 million total orders in the first nine months of 2020, compared with 181 million in the year-ago period.
The Grand 2 at Papago Park Center provides QFB’s investors with an exceptionally high-quality, risk-adjusted investment opportunity with a long-term lease, strong in-place cash flows and contractual rental escalations, located within an actively evolving market. Metro Phoenix is a thriving center of commercial and residential activity, with a young and educated workforce. Phoenix Sky Harbor International Airport is just minutes away and is available via the Metro Light Rail system. In addition, Papago Park Center is located within two miles from Arizona State University, home of 82,000 enrolled students and ranked #1 most innovative school in the country.
Commenting on the acquisition, QFB CEO Abdulrahman Totonji: “QFB is pleased to have received exceptional demand for subscribing to its Shariah-compliant DoorDash Real Estate structured investment product which is expected to pay a 7% annual return to its investors. As always QFB continues to hold true to its commitment to present the best in class, highly vetted, cherry-picked investments with risk-adjusted returns to its clientele and is delighted to have completed the acquisition of The Grand 2 at Papago Park Center. This comes a few months after our acquisition of yet another successful structured investment product, Varsity Brands, which we were able to syndicate completely in a matter of few days. A monumental achievement, one that sets the tone for a strong 2020 finish and a great start to 2021.”