Browsing 'qatar investment authority' News

byShabina S. Khatri
Business
byShabina S. Khatri
Business

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The Manhattan skyline

Qatar’s sovereign wealth fund is now among the top property owners in New York, a new report has found.

The Qatar Investment Authority (QIA), which also owns a great deal of real estate in Europe’s London and Paris, now holds some 10.69 million square feet of real estate in New York.

That’s up 145 percent from March of last year, according to commercial real estate intelligence group CoStar.

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Empire State Building in New York

This now makes the QIA the ninth largest property holder in the state.

Crain’s New York reports that this in large part due to the QIA’s $622 million investment in the company that owns the Empire State Building.

The August purchase gained the QIA a 9.9 percent stake in the Empire State Realty Trust, which manages what used to be the world’s tallest skyscraper.

The firm also has more than a dozen other office and retail properties, mostly in Manhattan.

Shifting strategy

The QIA has increased oversight on spending in recent years, and has been looking to buy more assets in the US and Asia after traditionally focusing on European markets.

Wealth fund officials have previously said they would invest $35 billion in the US by 2020.

And analysts take this to mean New York property will continue to attract the fund’s attention.

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Photo of London for illustrative purposes only.

Speaking to Crain’s, Michael Maduell, president of the Las Vegas-based research group the Sovereign Wealth Fund Institute, said:

“Internationally, New York real estate is a safe place to park assets. And wealth funds are sometimes willing to pay more for assets than real estate fund managers. They’re buying assets for the long term—like 20 to 30 years.”

That said, Qatari officials have recently pledged to invest £5 billion on the UK’s economy as it prepares to leave the European Union.

The investment will take place over the next three to five years, and be directed at real estate and infrastructure, among other things.

Qatar already owns the Shard, the Olympic Village and Canary Wharf, among other properties.

Thoughts?

byShabina S. Khatri
Business
byShabina S. Khatri
Business

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Photo for illustrative purposes only.

Qatar will spend some £5 billion on the UK’s economy over the next three to five years, its prime minister has announced.

The pledge to further invest in the UK’s infrastructure, real estate and technology comes at a critical time for the country, which is preparing to leave the European Union.

PM Sheikh Abdullah bin Nasser Al Thani made the announcement during a business and investment forum in London yesterday.

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Canary Wharf

The two countries already have a strong relationship, with Bloomberg reporting that Qatar has previously injected some £35 billion in the nation.

Much of this comes in the form of UK real estate, as Qatar owns the Shard, the Olympic Village and Canary Wharf, among other properties.

Qatari students and tourists also frequently visit the country.

Cushioning Brexit

According to Bloomberg, all of this helps explain why Qatar has a “big stake” in keeping the UK’s economy strong once it exits the EU.

Bloomberg

Qatar’s investments in the UK

Over the next few years, the UK will be taking the investment through the Qatar’s sovereign wealth fund, which remains very interested in the nation:

During this week’s forum, the CEO of the Qatar Investment Authority (QIA) Sheikh Abdullah bin Mohamed bin Saud al-Thani said:

“There is a pressure from my board to diversify in terms of geography and asset class, but we are still looking, even after Brexit, for opportunities (in Britain).”

Beyond Europe

Qatar is also hoping to attract investment to its own country, which is struggling with falling revenue from lower oil prices.

It has been doing so in part by expanding its relationships in Asia and the US.

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Photo for illustrative purposes only.

According to Reuters, the QIA announced plans this week to open an office in San Francisco.

The moves comes after Qatar committed to spending $35 billion in the US by 2020.

Thoughts?

Note: This article has been corrected to reflect that Qatar does not supply the majority of the UK’s imported fuel.

byShabina S. Khatri
Business
byShabina S. Khatri
Business
Empire State Building in New York

Michael Muraz/Flickr

Empire State Building in New York

Qatar’s sovereign wealth fund has acquired a nearly 10 percent stake in the company that owns the Empire State Building.

In an announcement yesterday, the Empire State Realty Trust said the Qatar Investment Authority (QIA) bought 29.6 million newly issued Class A common shares in the firm at $21 each – a $622 million investment.

QIA will now have a 9.9 percent economic and voting interest in the firm, Empire State added in a statement.

The iconic New York building used to be the world’s tallest skyscraper.

Its owner’s portfolio also includes more than a dozen other office and retail properties, mostly in Manhattan.

US focus

The purchases comes as the QIA has been diversifying away from Europe and buying more properties in the US and Asia.

Last September, Qatar officials announced plans to invest some $35 billion in the US over the next five years.

Since then, the wealth fund has opened a New York office.

According to Bloomberg, the QIA has also formed a joint venture with Brookfield Property Partners LP to develop Manhattan West, an $8.6 billion mixed-use project.

Thoughts?