Global Arab Network | Kuwait: KFH forms 0 MLN venture with UDR Inc

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Kuwait: KFH forms $450 MLN venture with UDR Inc

Global Arab Network - - Hannan Taha

Saturday, 15 August 2009 12:34

Kuwait Finance House (KFH) announced on Saturday the signing of an agreement with leading U.S. real estate investment company, UDR Inc., seeking to acquire high income residential real estate in major US cities with total investments of up to USD 450 million, at 70 percent for KFH.

In a press release, KFH said that this venture was an indication of KFH's ability to make qualitative investments in various fields and markets that offered the best returns for shareholders and investors, and assisted in executing the bank's global expansion policy, while building strategic alliances with major companies, and using the accumulative experiences of its employees to guarantee the best performance rates.

KFH CEO Mohammad Al-Omar said that he signed the agreement yesterday in London Friday with UDR's President and CEO Tom Toomey, adding that this venture was a continuation of KFH group strategy that focused on the real economy.

He said that the venture would target class "A" assets with a minimum value of USD 20 million that are less than seven years old, and that it was intended for the venture to be fully invested over a two year investment period.

Moreover, Al-Omar expressed cautious optimism, since KFH was back as a major player in the American real estate market, considered a continuation in the footsteps of the 1990s Dana real estate portfolio, and was later followed by five real estate portfolios.

On his part, Toomey was quoted as saying that establishing a venture with a high quality partner like KFH would allow UDR to continue to grow its portfolio, adding that UDR was looking forward to investing with its new partner during these opportunistic times, since KFH was a leader in the Islamic banking sector that was growing around the world.

He said that mutual cooperation was considered to be an opportunity that would benefit both parties, adding that UDR owned 50,000 apartment homes distributed all over the United States, in addition to thousands of houses that were being renovated.

Meanwhile, KFH's Assistant General Manager - Investment Sector, Abdulnasser Al-Subeih, said that KFH sought to focus on prime investment opportunities and was keen on diversifying its investments.

In this project, KFH is targeting an internal return rate "IRR" of 12-14 percent annually, in addition to studying investment opportunities and projects.(KUNA)

Global Arab Network

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