17-01-2021
Qatar First Bank, the first independent investment bank compliant with the provisions of Islamic law and licensed by the Qatar Financial Center Regulatory Authority and listed on the Qatar Stock Exchange under the symbol (QSE-QFBQ), announced the completion of the acquisition of a hypermarket retail building in Al-Messila, with a value of 262.5 million riyals, which strengthens the bank's presence at the local level in the Qatari market.
Lulu currently operates this property in the form of an integrated hypermarket located on Hamad Bin Jassim Bin Hamad Street, south of Khalifa City, Al-Messila, Doha, on a built-up area of 44,661 square feet. The property consists of four floors and 299 parking spaces to provide enough convenience for LuLu to successfully operate the hypermarket. The property was built in 2016 and is 100% occupied by Lulu Hypermarket under a triple net lease term of 20 years, the remaining term of which is 16 years.
His Excellency Sheikh Faisal bin Thani Al Thani, Chairman of the Board of Directors of Qatar First Bank, commented on this event, saying: “This acquisition, which is in compliance with the provisions of Islamic law, is an essential stage for Qatar First Bank to strengthen its presence and position in the local real estate investment market in compliance with the provisions of Islamic law in line With the diversification strategy adopted by the bank on the level of both asset class and geography. The acquisition also highlights QFB's commitment to investing in high-quality real estate assets in the Qatari market and shifting its focus to direct ownership of Qatari real estate after the start of facilitating new regulations imposed on companies registered at the Qatar Financial Center.
Lulu Hypermarket Trading LLC, which is one of the fastest growing companies in the field of retail in Qatar, has succeeded in occupying the leadership position in the retail sector by providing a distinctive shopping experience to its valued customers, especially in everything related to foodstuffs And basic commodities for consumers - one integrated store (food, products, electronic devices and household items). Since Lulu opened its first hypermarket in 2000, it has become known for its excellence and has succeeded in building a large and loyal customer base, the company recently celebrated its rapid growth and the opening of its fourteenth store.
QFB's decision to acquire the Lulu Hypermarket Al-Messila building was based on a rigorous asset examination process by the bank. Thus, investors in this property will get an annual return higher than the market with the possibility of investing in defensive assets and exiting with high returns regardless of the existing macroeconomic factors.
Commenting on the acquisition, Abdulrahman Totonji, Acting CEO of Qatar First Bank, said: “This acquisition strengthens QFB's position as a competitive player not only in the US real estate investment market in compliance with Islamic law, but also in the domestic market. Qatar First Bank chooses its deals carefully, and this time it has succeeded in choosing this Qatari real estate investment at the local level after examining all investment opportunities and associated risks. Qatar First Bank has a diversified portfolio of deals that not only support the bank’s distinct position in the market, but also provide valuable returns to its customers and shareholders. ”
Qatar First Bank concluded the year 2020 in a distinguished way despite the great economic challenges that this year witnessed at the global level, and the bank continued to move forward with reliable steps amid economic instability thanks to its prudent risk management and diversified investment portfolio. In the year 2020, the bank successfully completed some significant acquisitions in the US real estate market, including The Grand 2 in Papago Park Center, BSN Sports “Varsity Brands” headquarters in Texas, and 90 North Coast Campus in Seattle in Washington, while successfully exiting the second deal to invest in Sharia-compliant aviation.
As always, Qatar First Bank is committed to providing the best Islamic Sharia-compliant and carefully selected investments to its clients, and it seeks to conclude more deals in Qatar as it believes in the prosperity that this country will witness in the coming years due to its distinguished position.