03-07-2022
Qatar First Bank LLC. M. M. (Public) acquired the Gateway Plaza building in Richmond, Virginia, USA, which is a highly rated Class AA, 330,000 square foot property developed in 2015 with a distinctive design to meet the requirements of its tenants. This acquisition constitutes a huge addition to the Bank's investment portfolio, as it will ensure the provision of more stable cash flows.
The new investment is the fourteenth investment for Qatar First Bank in the framework of its new strategy that focuses on real estate investment in accordance with the provisions of Islamic Sharia. The new building is the eleventh real estate property in the United States in light of the bank's endeavor to expand its presence and enhance its experience in the American real estate market.
This LEED Gold-certified, multi-tenant office building has been built to the highest quality standards and to best specifications, with unobstructed views of downtown Richmond and the James River. The property is also close to a large number of shops, modern housing, entertainment and arts centers, which are an attractive factor for tenants. The occupancy rate of the property is 98%, and it includes the headquarters of prominent companies under long-term contracts with progressive rental rates. Given the significant obstacles to similar projects and the lack of construction plans to develop office buildings in the foreseeable future, this building provides investors with an opportunity to invest in best-in-class assets in the market under unparalleled stable conditions and a growing and high-demand market.
The bank's investment in Richmond is attributed to its economic growth that continues to outpace the larger US economy with an unemployment rate of 3.6% following the region's post-Covid-19 recovery. The Richmond CBD has seen a strong demand for quality buildings in recent years, with more than 75% of all leases located in this area of Class A buildings, since 2017. This has reduced rates Vacancy in high-value buildings is less than 3.5%.
Commenting on the decision, Sheikh Faisal Bin Thani Al Thani, Chairman of Qatar First Bank, said: “We are pleased to announce our success in acquiring a new real estate investment in the United States, which is the eleventh investment in compliance with Islamic law. Qatar First Bank has succeeded in negotiating and acquiring the property despite the general climate characterized by many challenges in terms of interest rates. We have achieved this historic achievement and succeeded in acquiring the property at an attractive price that may generate attractive returns for our investors.”
Abdul Rahman Totonji, CEO of Qatar First Bank, said: “We are extremely pleased to expand our footprint in the US real estate market with Sharia-compliant deals, especially in this exciting post-Covid era. The Bank will continue to benefit from its strategy aimed at seizing fruitful investment opportunities that provide the greatest returns for our clients. We are also pleased with the increasing demand from local clients for this type of investment, as we acquired most of our investments within a short period of time, and we can attest to our successful track record of real estate exits.”
Qatar First Bank LLC (Public), is the first independent Shariah-compliant investment bank approved by the Qatar Financial Center Regulatory Authority and listed on the Qatar Stock Exchange under the symbol (QSE-QFBQ).