The CEO of Qatar’s $450 billion sovereign wealth fund, a significant player in European property acquisitions, expressed concerns about the commercial real estate market. Mansoor Al Mahmoud, CEO of the Qatar Investment Authority, highlighted the sector’s “a little bit of risk” due to leverage and funding costs in a Bloomberg Television interview at the World Economic Forum in Davos on Monday.
Despite these concerns, the sovereign wealth fund, which committed to a £400 million investment in the London dockland financial district alongside Brookfield last year, reaffirmed its commitment to the Canary Wharf Group project as a long-term shareholder. Al Mahmoud stated, “It is not time to exit it by all means.”
Canary Wharf has faced challenges since the pandemic-induced shift to flexible working, resulting in fewer occupants for the large office blocks dominating its skyline. Notably, HSBC Holdings Plc and law firm Clifford Chance announced plans to leave the district for new locations in central London. The area, traditionally dominated by financial services, aims to attract more residential and life-sciences tenants.
Established in 2005 to manage Qatar’s revenue from liquefied natural gas, the QIA, known for its interest in trophy assets, supported lenders like Barclays Plc and Credit Suisse during the 2008 financial crisis. Currently ranking as the world’s eighth-largest wealth fund, according to data and consultancy firm Global SWF.