Mubasher: The First Investor (TFI) Qatar has announced its acquisition of a commercial asset in Paris, France, noting that the acquisition will complement its European Fund owing to its diversified and high-yield income.
A subsidiary of Barwa Bank Group, TFI revealed that the asset structure is both sharia-compliant and tax efficient.
“The acquisition consists of a freehold commercial office building in Pantin, a dynamic banlieue just on the boundaries of Paris known as the City of Light and the next center of art and culture,” TFI said in a statement, noting that the property’s tenants are long-lease “high-grade” ones.
As part of its TFI European Fund, which was launched earlier in 2017, TFI has so far successfully acquired two other assets in major European cities and plans to continue to make other acquisitions over the next few months.
The purpose of such acquisitions it to increase TFI’s presence and achieve high yield return of around a 6% to 7% profit rate annually net to investors.
“The assets risk base is low as compared with high risks in other low-interest rate universe,” TFI stated.
Together with its alliance and partner Inovalis France, TFI views Germany and France as a “potential hub for foreign companies who may migrate from the UK due to the Brexit”, making these cities important places for TFI’s acquisitions, which would take the TFI Euro Income Fund to a higher level.
“The First Investor and together with Inovalis consider assets in key European capitals to be comparatively cheap and that the pace of supply is modest as compared with demand. Therefore, investors and global funds eye more investment especially as Brexit uncertainty prevail and this manifest by recent rise in the Euro currency,” a TFI senior executive said.
