The trend highlights the attractive risk-adjusted returns from this asset class
14 May 2017
By Satish Kanady / The Peninsula
Qatari investors are increasingly looking for opportunites in the booming US propery market, with shifting significant funds into the fast-growing multifamily residential real estate segment. The trend highlights the attractive risk-adjusted returns from this asset class.
Just Real Estate (JRE), the leading property service provider in Qatar, yesterday announced it has 'unlocked the doors to its US portfolio', giving investors in Qatar a rare opportunity to set up home in two iconic neighborhoods in the United States. Last week, QInvest, Qatar's leading private investment group and one of the region’s most prominent Islamic financial institutions, announced its US mulitifamily residential-focused real estate fund Magnolia Real Estate Fund. The fund completed its first acquisition of an outstanding asset in Colorado, US.
“We foresee solid investment activity and fundamental growth in US multi-residential sectors. We are putting the fund together, acquiring assets and building the portfolio and provide the GCC investors more awareness about this fund and the risk-adjusted income components”, Craig Cowie, Head of Real Estate Investment & Advisory, QInvest
told The Peninsula in an interview.
Multifamily residential development and transactions accounted for a significant share of US real estate investment in 2016 during a year when the majority of the nation’s large urban markets enjoyed declining vacancies and rising rents. Analysts now anticipate more of the same in 2017.
The multifamily assets are a massive sector in the US. There are lot of buyers and sellers in this market. In the US, there is lot of specialision in this sector, which is not available in other markets, which again is an attraction. Moreover, it is very easy to exit from this investment.
QInvest has been investing in Western Europe, UK and US for the past 5-6 years. There is a decent cash-on-cash returns of 8-10 percent per annum. It can also go up to 12-15 percent. And QInvest is able to do it in a very tax-efficient manner, Craig said. JRE recently added two upscale addresses in Miami and New York City to its ever-growing portfolio of luxury developments in Qatar.
“In just 12 months of operations we have proved ourselves to be the leading provider of real estate solutions and our reputation continues to grow with the highest level of customer service we offer, complementing the range of opportunities we can bring to our clients and partners we work with,” said JRE Chairman Engineer Nasser Al-Ansari.
Qatar, as a country, is becoming a big player in the New York City’s real estate market, with unconfirmed reports showing Qatar Investment Authority ranking the city's ninth-largest commercial property owner. The sovereign wealth fund's standing emerged in CoStar's recent ranking of New York's largest commercial owners.
© The Peninsula 2017