Qatar Becomes Big Player in New York City Real Estate

Category: Commercial Real Estate

The small Middle Eastern country of Qatar has become a big player in New York City’s real estate market, reports Crain’s New York Business. The nation’s Qatar Investment Authority (QIA), reported recently to be a top owner of London real estate, has also been named New York City’s ninth-largest commercial property owner.

Buying assets “for the long term”

After investments in mining and auto manufacturing soured, Qatar’s sovereign wealth fund was reportedly seeking the portfolio stability that Big Apple real estate is said to offer. “Internationally, New York real estate is a safe place to park assets,” Michael Maduell, president of the Sovereign Wealth Fund Institute, a Las Vegas data firm, told the news outlet. “And wealth funds are sometimes willing to pay more for assets than real estate fund managers. They’re buying assets for the long term — like 20 to 30 years,” he explained.

Qatar to invest $35 billion by 2020

The article reports that last summer the QIA bought a 9.9 percent stake in the real estate investment trust (REIT) that controls the Empire State Building. That investment was on top of other deals for Manhattan offices and multi-family buildings added since 2015. By March 2017, the QIA’s total rentable building area reportedly stood at 10.7 million square feet, an increase of 145 percent year over year.

It is estimated the Qatar government has invested $3.8 billion in New York City property acquisition deals and a further $2.7 billion in other parts of the U.S. More transactions are anticipated in New York by 2020, that would reportedly give the QIA a real estate portfolio worth $35 billion.

 

Posted on: Monday, May 15, 2017