By Sarmad Qazi
Qatar First Investment Bank (QFIB) has acquired a prime property in the heart of Doha from Al Jazeerah Islamic Company (AJIC). The 11,000sqm property, a 10-storey building (in addition to M + GF) on Suhaim Bin Hamad Street near Al Sadd, was purchased by QFIB for QR185mn from the Shari’ah-based financial solutions provider.
Itself a fully-independent Shari’ah compliant investment bank authorised by the Qatar Financial Centre Regulatory Authority, QFIB also acquired stakes in AJIC from Kuwait-based Global Investment House.
Commenting on both transactions yesterday, QFIB chairman Abdulla bin Fahad bin Ghorab al-Marri said: “Our business strategy focuses on building a diversified portfolio of investments in key sectors of the economy of which the real estate and financial sectors are included.
“The acquisition of both the building and the shares present sound investment opportunities for QFIB. Furthermore, confidence in the real estate sector in Qatar remains high in spite of the current economic situation, and office space in prominent locations in Doha is still at a premium.”
Being centrally located, the building is in an ideal location to establish the bank’s corporate headquarters.
“We had other choices of location but they were over-congested. Would you drive all the way to West Bay or the Grand Hamad Street (Bank Street) or come here,” al-Marri said to question on choice of the headquarters away from the traditional hubs.
AJIC chairman Mohamed Abdul Latif al-Mana said: “We are pleased with the successful sale of the building and welcome QFIB as one of our shareholders.”
Qatar’s solid current and projected GDP growth has resulted in a rapid increase in population. Coupled with the tight liquidity environment caused by the current global financial crisis, this development puts upward pressure on the supply of financing and presents an enviable situation for AJIC, al-Mana explained.
When asked about the timing of investing in a building when recent reports have indicated a continuing slide in rentals on prime locations such as C-Ring Road, al-Marri said he remains extremely “optimistic”.
“There are simply huge ongoing projects in Qatar; in energy, in sports, in education, in health. This brings an inward young population. People are going to need residential and business space,” al-Marri told Gulf Times.
QFIB will use three floors to house its corporate headquarters and put the rest for commercial rent.
“The acquisition of the building will provide QFIB with substantial rental cash flow and as a fully-licensed QFC building, we will benefit from the number of international investors entering the market who will require quality office space,” he added. |
