The government of Qatar is set to enter the U.S. property market for the first time in one of the most positive signs of so far this year.
The $700 million investment in the City Center DC project by the Qataris – labeled America’s biggest downtown development – marks the first such gambit this side of the Atlantic by Qatari Diar Real Estate.
The Qatari government’s property arm, which is more well known for its focus on London property investments, has emerged as the biggest backer of an ambitious 10 acre development which is currently the biggest of its kind in the states at the moment.
The Middle Eastern investment firm are financing the U.S. developer Hines, as well as residential investment and operating firm Archstone, who are to run the mixed-use development.
Commenting on what is one of the strongest signs yet that this year will see a huge boost in foreign investment in the U.S real estate market, Jones Lang Lasalle director Fadi Moussalli said that this is just one of a number of future American deals in the pipeline for the Qatari outfit. Speaking to Dubai newspaper The National, Moussalli explained that the sovereign wealth fund of the arabic state was determined to gain more exposure in the American property market.
“Currently, they are somewhat overexposed in the UK, and so they are looking to balance their portfolio”, Moussalli said.
Qatari money has helped to bring to fruition a number of the most well known London developments in recent years. Qatari Diar is currently the biggest backer of the Shard, which will take over the mantle of tallest building in Europe once complete.