When it comes to Qatar’s investments abroad, experts borrow a term from the aviation industry, open skies, to describe its policy to reference wide geographical distribution and a neutral political approach.
The country and its investment companies have been busy. In the first two quarters of this year alone, the value of Qatari deals and investments abroad is said to have surpassed $10 billion (about Dh36.7 billion). And there’s more to come with a massive agreement announced in October in China and another currently unfolding in London.
Here’s a peek at some of the biggest acquisitions made by Qataris.
Land in Australia
Farming can be extremely challenging in the desert due to the sweltering heat — which is why Qatar is turning to Australia. With a capital of $1 billion to invest around the world, Hassad Foods — the agricultural arm of the Qatar government, set up in 2008 — began to buy properties in Strathdownie, Victoria and Cunnamulla, Queensland.
It later went on to purchase farms in various locations in New South Wales, as well as in the Western Australian towns of Bindi Bindi, Jerramungup and Esperance. In four years, the company has accumulated 255,000 hectares of agricultural land with the aim of producing 165,000 tonnes of grain and raising 100,000 lambs a year. In June last year, Qatar received its first shipment of barley — 28,620 tonnes — from Australia.
CityCenterDC
This real estate development in Downtown Washington DC became Qatar’s first purchase in the US. Construction of the $950-million project — of which Qatari Diar, a real estate company set up by the Qatar Investment Authority (QIA), owns $620 million — began in 2011. It has been dubbed the largest urban development on the US’ East Coast.
At the breaking ground ceremony, Qatari officials revealed that they considered this deal to be the most important in their then $60-billion portfolio, with both Ali Bin Fahad Al Hajri, Qatari ambassador to the US, and Joseph LeBaron, the former US ambassador to Qatar, present at the event.
China
It may be one of the world’s biggest economies, but that doesn’t mean China is willing to turn down a piece of the Qatari pie. In October, the QIA signed an agreement with the state-owned conglomerate Citic Group Corp to open a $10-billion fund for investing in the region. It is reported that both investors will share a 50 per cent stake. This investment is said to be a part of the QIA’s efforts to diversify from its traditionally Europe-focused portfolio, with the authority looking to spend between $15 billion and $20 billion in Asia in the next five years.
Port Tarraco marina
Featuring 64 berths and located about 100 kilometres south of Barcelona, Port Tarraco marina in Tarragona is one of the most sought-after spots in Spain, thanks to it being designed exclusively for super yachts. Qatari Diar bought it in 2011 for an undisclosed sum through its subsidiary Qatari Diar Marina Tarragona.
According to the developers, Port Tarraco will become “one of the few existing marinas of its kind in the Western Mediterranean to offer deep-water berthing for large sophisticated super yachts, mega yachts and giga yachts”.
Valentino
In 2012, Valentino Fashion Group was snapped up by Qatar-backed Mayhoola for Investments for a reported $857.5 million. It was bought from UK-based private equity firm Permira and minority investor Marzotto Group.
The purchase is said to have been spearheaded by Shaikha Mouza Bint Nasser Al Misned, the former First Lady of Qatar. Shaikha Mouza also owns the Qatar Luxury Group, which has stakes in the French leather brand Le Tanneur & Cie, as well as luxury handbag and accessories designer Anya Hindmarch.
Paris Saint-Germain
In late 2012, Qatar Sports Investments bought the French football club Paris Saint-Germain (PSG) for a reported $130 million. With a further investment of $340 million in the club, PSG was able to sign more than 15 players from the top-ranking international pool, including Swedish striker Zlatan Ibrahimovic for $21 million and Argentinian midfielder Javier Pastore for $54 million.
The president of PSG is Nasser Al Khelaifi, a Qatari businessman and former professional tennis player who is also the Chairman and Chief Executive Officer of beIN Media Group.
Sainsbury’s
Qatar is the biggest investor in the British supermarket giant, owning a 26 per cent stake in the company. The remainder of the brand’s shares are split between the Sainsbury family (14 per cent) and other long-term institutional investors. However, financial analysts are predicting that could change soon.
In April 2007, the QIA bought a 14 per cent stake, causing Sainsbury’s share price to rise by 7.17 per cent. The Qatari company’s stake was later increased in June of the same year. It did try to take over the business completely, but failed. Now, with Sainsbury’s shares trading at their lowest since 2003, a takeover bid from the QIA could very well be on the cards.
Harrods
Did you know that Harrods is fully owned by the Gulf country? Qatar Holding — an indirect subsidiary of the QIA — paid a staggering $2.3 billion in 2010 for the world-renowned British luxury store, as well as the rest of the Harrods Group. It consists of Harrods Bank, Harrods Estates, Harrods Aviation and Air Harrods.
The former owner, Egyptian tycoon Mohammad Al Fayed, explained that he sold the company because he was retiring to spend more time with his children and grandchildren.
The Knightsbridge department store, which, in recent years, has become famous for the luxury cars with GCC numberplates parked outside it, occupies more than one million square feet of selling space for more than 330 departments, making it the biggest department store in Europe. Earlier this year, Ahmad Al Sayed, Chairman of the Executive Board of Harrods and former Chief Executive Officer of the QIA, revealed the brand could soon set up shop in New York City as well as other prime cities. Could Dubai be on the cards?
However, Al Sayed stressed that the landmark Knightsbridge store would not be replicated anywhere else.
London property
Qatar is one of the biggest investors in London real estate, continually acquiring prime projects.
The Olympic Village of the 2012 Summer Olympics was sold to Qatari Diar for $874 million after it teamed up with Delancey, a UK-based real estate company. Following the games, during which the village was used to house the athletes, the area was converted into a residential neighbourhood. It consists of 2,818 homes, including 1,000 family homes with three or four bedrooms. The rest of the properties range from studio flats to five-bedroom apartments, as well as a school, eateries, clinics and parks.
Media reports say Qatari Diar and Delancey plan to turn the bulk of their shares of 1,439 residences into rental accommodation.
The tallest building in the EU, The Shard is an 87-storey skyscraper in London that’s a part of the London Bridge Quarter development, and currently co-owned by Qatar. While it was initially supposed to be a project built and owned by a British company and spearheaded by Sellar Property, doubts arose over its viability following the recession.
In 2008, Sellar announced that a group of Qatari investors, including Qatar National Bank, QInvest, Qatari Islamic Bank and the Qatari property developer Barwa Real Estate, paid $235 million to secure an 80 per cent stake in the development. Qatar established its ownership of the London Bridge Quarter project, including The Shard, in 2009. The building opened its doors to the public last February.
The QIA, with Canadian investor Brookfield Property Partners, is currently involved in a £2.6-billion (about Dh14.9 billion) bid to take over Songbird Estates, which has a controlling stake (69.37 per cent) in the Canary Wharf Group. Canary Wharf, about four miles from The Shard, is one of London’s major business districts.
