Qatar First Bank announced that it has acquired The Grand 2 at Papago Park Center that is 100 percent leased to DoorDash under a 15-year triple net lease.
Qatar , Qatar
14 December 2020, 12:00 AM
31 December 2020, 12:00 AM
Qatar First Bank (QFB) on Saturday announced it has acquired The Grand 2 at Papago Park Center, Located in Tempe, Arizona of United States. The Grand 2 is part of the Metro Phoenix market.
Developed and managed by Lincoln Property Company, The Grand 2 is comprised of a nine-story, best in class, LEED Silver certified building built in 2020 and a seven-level parking structure providing 1687 parking spots. The Grand 2 has the capacity to house approximately 2000 DoorDash employees, making it the company’s largest facility.
Commenting on the acquisition, QFB Chairman Sheikh Faisal bin Thani Al Thani said, “This transaction cements QFB’s new fee-based income business model implemented to enhance QFB’s investment management strategy, and further, strengthen its Shariah-compliant US real estate portfolio. The new strategy continues to invest in handpicked Sharia-compliant real estate assets that provide highly stable income to investors as well as upside potential.”
The stock opened for its first day of trading on December 9 at $182 and closed at 189.51, 85.8 percent above its IPO price reflecting a market value of $60 billion. DoorDash was founded by Stanford University students in 2013 and has come a long way to become the leading on-demand prepared food delivery service that uses proprietary data and logistics services.
The Grand 2 at Papago Park Center provides QFB’s investors with an exceptionally high-quality, risk-adjusted investment opportunity with a long-term lease, strong in-place cash flows and contractual rental escalations, located within an actively evolving market.
Commenting on the acquisition, QFB CEO Abdulrahman Totonji said, “QFB is pleased to have received exceptional demand for subscribing to its Shariah-compliant DoorDash Real Estate structured investment product which is expected to pay a 7 percent annual return to its investors”.