First Qatar develops Pearl properties

The island itself extends two million square metres, costing $3bn. First Qatar is taking some 37,500 square metres, for its residential project.

Porto Arabia

Construction of the first phase, the Porto Arabia, has already started and is scheduled for completion in October 2008, according to Fahad Khalid Al Ghunaim, Chairman, First Qatar.

The Viva Bahriya phase, a 14,500 square metre twin tower, and the Abraj Cartier phase will follow in the first quarters of 2010 and 2011 respectively.

First Qatar apartments target both the middle and high-end markets, while distinguishing between western and eastern buyers. 'Gulf investors prefer spacious and convenient apartments while the western investors prefer compact practical apartments. This is something we've taken into account upon designing our offerings,' Al Ghunaim said.

Recently, the company has sought co-operation with property management and interior design companies. Al Ghunaim said that First Qatar has already signed a deal with Italplus, an interior decorator, to provide furniture for the project's clients at reasonable prices. In addition, it hopes to seal a deal with one of the world's top five property management companies, although its name is still under wraps.

'First Qatar wants to distinguish itself from other players in the market by selling a concept and a living style. The way to do that is by building a complete circle of services around the customers, such as property management, property furnishing, security services, day care for children and business centres.' Al Ghunaim explained.

Armed with knowledge

International expansion is a trend in most industries today, and real estate is not an exception. Not long ago, First Qatar announced expansion plans in Oman and Kuwait. This will include a mixed-use development in Oman, with an initial cost of $10m, and a residential project worth some $18m in Kuwait.

Al Ghunaim said that its three to five year strategy is to expand in the GCC countries, armed with its knowledge of this market as direct investors. Furthermore, the company has indirect investments in real estate funds that invest in Asia, Europe and the US, plus shareholdings in various real estate companies.

Diversity is key to First Qatar, it says, and this can be seen through three more three funds: with the Global Investment House, a real estate fund with the Swiss UBS Bank and another with the Kuwait Finance House.

The budget for this three to five year strategy won't be revealed before the company finishes its forecasts by the end of the year.

'We know how much we expanded in 2007, and we already have a number of portfolios. If they outperform the real estate returns then we'll keep them, and if they don't then we resort to reinvestments. That's the way we work, a cycle of reinvestment to enhance our portfolio.' Al Ghunaim concluded.

See also:
Barwa building up a sizeable portfolio
The Pearl-Qatar begins to rise from the ocean