QInvest Announces 14.9% IRR on US Real Estate Mezzanine Murabaha Transaction

November 19, 2017

QINVEST announced the successful exit of a real estate mezzanine murabaha transaction in the US. The transaction, backed by a diversified portfolio of 17 assets, generated an IRR of 14.9% (representing a 1.23x multiple) over 20 months.

Tamim HamadAl-Kawari, Chief Executive Officer of QINVEST, said: “While 2017 has been notable for adverse market conditions in the region, QINVEST has witnessed continuing investor appetite for the international real estate sector, with particular interest in the US market. A return of almost 15% over 20 months reflects a strong return for a mezzanine transaction given the conservative level of risk."

“Across the year, we have seen strong performance within our Real Estate division demonstrating the sustainability and resilience of our business strategy and professionalism of our team. We will continue to invest in key global markets on an opportunistic basis as we focus on delivering sustainable value for clients and shareholders.”

Craig Cowie, Head of Real Estate Investments & Advisory at QINVEST, said: “The real estate market continues to be a strategic priority for QINVEST. As part of our strategy of originating new investment opportunities, across both the debt and equity segment, we have closed several real estate transactions this year. The latest is the mezzanine murabaha of a diversified portfolio of 17 US assets."

“Since inception, the Real Estate division has invested over US$ 1 billion of QINVEST’s balance sheet and advised on transactions with an aggregate value of over US$ 4 billion. We are committed to providing effective financing solutions for real estate transactions in Qatar and in international markets, such as Continental Europe, UK and the US.”

Participating in recent flagship industry event, “Doing Business and Investing in the United States & Qatar Forum”, Vaughn Weatherdon, a director in QINVEST’s Real-estate division, shared his insights and experience regarding investment opportunities in the USA real estate sector, a market in which QINVEST has a strong, long-term track record. In front of an audience of business leaders and decision makers, Mr Weatherdon described QInvest’s strategy regarding US property given investor preferences and where optimum returns can be made.