The Real Deal New York

Qatar is changing its investment strategy following Brookfield’s 666 Fifth deal

Firm no longer plans to invest money in funds it does not completely control
February 12, 2019 08:00AM

From left: Jared Kushner, 666 Fifth Avenue, and Sheikh Tamim bin Hamad Al Thani (Credit: Getty Images, Google Maps, and Facebook)

Qatar is rethinking how it invests its money abroad following the deal Brookfield struck last year to bail the Kushner Companies out of 666 Fifth Avenue.

The Qatari government had invested with Brookfield but played no part in the 666 Fifth Avenue deal, which it first learned about in the media, according to Reuters. The country’s Qatar Investment Authority will now try to avoid putting money in funds or other investment vehicles it does not completely control.

The shift could significantly impact the global investment scene, as the QIA is one of the largest state investors in the world, managing more than $320 billion. It has invested in several famed buildings over the years including the Plaza Hotel in New York and the Savoy Hotel in London.

The QIA bought a 9 percent stake in Brookfield in 2014 for $1.8 billion to help increase its investments in American real estate. The investment authority also formed an $8.6 million joint venture with Brookfield the following year to develop Manhattan West.

Brookfield’s rescue of 666 Fifth was received poorly in Qatar given Jared Kushner’s strong support of Saudi Arabia and Prince Mohammed bin Salman, one of the main forces behind the effort to embargo Qatar.

Qatar still has good relations with Brookfield and does not plan to wind down its existing investments with the company, sources told Reuters. However, it will no longer invest in similar deals. [Reuters] – Eddie Small