Doha – Mubasher: QInvest, a subsidiary of Qatar Islamic Bank (QIB), on Tuesday announced its collaboration with a GCC institutional investor to launch the Magnolia Real Estate Fund.
The Qatari bank announced its acquisition of an asset located in Fox Creek, Thornton, a northern suburb of Denver, Colorado in the US. This was financed by an Ijarah property debt structure provided by Freddie Mac.
“Thornton boasts favourable demographics and significant growth over the past 20 years, combined with muted levels of new supply in the submarket,” head of Real Estate at QInvest Craig Cowei stated.
The Magnolia Real Estate Fund is focusing on investing in the fast-growing, income-generating residential market in the US, for which profits increased for the seventh consecutive year.
The fund consists of 287 units and is building a portfolio of assets in the sector to make more acquisitions in 2017.
It is expected to yield net cash in excess of 8% on annual basis and a net IRR between 12-13%.
TruAmerica, a multifamily manager, has co-invested in the asset and will oversee the day-to-day operations of the property.
“By focusing on the multifamily space in the US real estate sector, we are confident that we can offer regional investors higher than average, targeted risk-adjusted returns with the benefits of a structured platform that ensures proper management of assets and diversification,” CEO of QInvest Tamim Hamad Al-Kawari said.
