Qatar’s sovereign wealth fund, Qatar Investment Authority - QIA, is building a global top-end hotel portfolio , said a recent report published by the International Forum of Sovereign Wealth Funds (IFSWF). QIA confirmed its appetite for trophy-assets and luxury brands by acquiring via its specialised subsidiary Constellations Hotels Holding nothing less than the InterContinental flagship hotels in London and New York; l’Hotel du Louvre in Paris; and the Four Seasons Hotel in Florence. In a separate 100m pounds deal it also acquired the freehold from the Crown Estate, the property company that controls the assets of the Crown in the UK.
"Indeed, QIA is building a global top-end hotel portfolio, and this year’s $2.4 billion purchases mark another landmark in the process," noted the report. The report pointed out that QIA confirmed its interest in “trophy assets”, as its investment in luxury brands and retailers continues unabated. QIA’s subsidiary Qatar Holding took full control of French department store Printemps. Qatar Holding bought a controlling stake from the real estate investment division of Deutsche Bank’s Asset Management division via its specialised Luxemburg-based operating arm Divine Investment, outbidding the French competitor Galaries Lafayette. QIA also increased its stake in Tiffany & Co to 11.3%, with the acquisition of an additional 3.2 million shares of the retailer.
“After Harrods, LVMH, Porsche, and some of Europe’s leading luxury hotels, the extent of Qatar’s Investment Authority involvement in the luxury industry this year has become even more impressive, perhaps not surprising given that Qatar is, by some metrics, the richest country in the world.”
In 2013, the share of domestic investments remained in the same range of the previous year, with SWFs purchasing domestic assets worth $7.7bn in 33 deals. The biggest spender was QIA, due to the sizeable investment in the Doha Investment Corporation.
“After spectacular records of last year, one could hardly figure out that QIA’s could gain further prominence as direct equity investor amongst SWF. Yet in 2013 QIA not only leads the ranking by deal value, but it has also increased its share of total investment from 26% to 30%, thanks to 26 acquisitions with $14.9bn.”
The report said global SWF’s appetite for big international banks did not vanish completely in 2013. Indeed, one of the most significant deals of the year is the $1bn investment in Bank of America by QIA, an example of the fund’s strategy to acquire minority stake in major global companies.
In the past, QIA has gained exposure to Western financial institutions through a stake in Credit Suisse, acquired in 2008, and three capital injections into Barclays in the same year. QIA currently holds also interests in the financial sector in Greece, after investments in the now merged Alpha Bank and Eurobank, the report said.
"Indeed, QIA is building a global top-end hotel portfolio, and this year’s $2.4 billion purchases mark another landmark in the process," noted the report. The report pointed out that QIA confirmed its interest in “trophy assets”, as its investment in luxury brands and retailers continues unabated. QIA’s subsidiary Qatar Holding took full control of French department store Printemps. Qatar Holding bought a controlling stake from the real estate investment division of Deutsche Bank’s Asset Management division via its specialised Luxemburg-based operating arm Divine Investment, outbidding the French competitor Galaries Lafayette. QIA also increased its stake in Tiffany & Co to 11.3%, with the acquisition of an additional 3.2 million shares of the retailer.
“After Harrods, LVMH, Porsche, and some of Europe’s leading luxury hotels, the extent of Qatar’s Investment Authority involvement in the luxury industry this year has become even more impressive, perhaps not surprising given that Qatar is, by some metrics, the richest country in the world.”
In 2013, the share of domestic investments remained in the same range of the previous year, with SWFs purchasing domestic assets worth $7.7bn in 33 deals. The biggest spender was QIA, due to the sizeable investment in the Doha Investment Corporation.
“After spectacular records of last year, one could hardly figure out that QIA’s could gain further prominence as direct equity investor amongst SWF. Yet in 2013 QIA not only leads the ranking by deal value, but it has also increased its share of total investment from 26% to 30%, thanks to 26 acquisitions with $14.9bn.”
The report said global SWF’s appetite for big international banks did not vanish completely in 2013. Indeed, one of the most significant deals of the year is the $1bn investment in Bank of America by QIA, an example of the fund’s strategy to acquire minority stake in major global companies.
In the past, QIA has gained exposure to Western financial institutions through a stake in Credit Suisse, acquired in 2008, and three capital injections into Barclays in the same year. QIA currently holds also interests in the financial sector in Greece, after investments in the now merged Alpha Bank and Eurobank, the report said.
Source:
Mubasher
