|
International Real Estate
The creation of a separate
International Real Estate Department (IRED) was a strategic initiative
of the management aimed at consolidating KFH’s strength in the
property sector, with the specific objective of exploiting
opportunities in the overseas realty market. This Department
undertakes real estate investments in selected markets using a
spectrum of asset types that include commercial, industrial and
residential properties.
IRED creates opportunities for KFH and its clients through a planned
acquisition of single and multi-family real asset portfolios. In most
instances, the investment vehicles are structured in such a way, that,
individual properties are grouped into a diversified asset portfolio
wherein investors could participate to enjoy a steady stream of
dividends and capital gains.
IRED targets well located properties with high occupancy rates that
generate a sustainable stream of cash dividends, and upside potential
for capital appreciation. These investments are undertaken with the
involvement of other real estate operating companies who join as
co-investors and / or advisors in the process of asset acquisition,
value addition and disposal.
As of December 2003, real estate holdings constituted a sizable
portion of KFH’s significant investment portfolio. The rapid expansion
of property holdings was mainly attributed to KFH’s successful past
track record in the property investments.
An outline of some of the existing and potential international
property funds are briefly described below:
The Healthcare Fund
Healthcare Fund was established in 1997 with a capital base of GBP 42
million. The Fund had a five year tenor, and its portfolio comprised
of twenty three properties secured by long-term leases with well known
Nursing Home Operators in the UK.
Al Deara Real Estate Fund
Al Deara Fund targets a net annual yield of 10% to its investors. This
fund invests in raw land in the USA, and undertakes development work,
upon which they are sold to potential developers of residential
properties.
Al Soor Real Estate Leasing Fund
This is a US$ 100 million Fund established in partnership with
Citigroup. Al Soor has been established with the primary objective of
investing in a diverse pool of substantially stabilized multi-family,
office and industrial properties that will generate a stable stream of
income.
Prime Industrial Fund
KFH has recently launched another unique fund with a capital base of
US$ 100 million, which aims to invest in a portfolio of industrial
warehouses. This project is undertaken in partnership with Deutsche
Bank and First Industrial, a major US company in the industrial
property market.
Swedish Post Office Transaction
The Swedish Postal Transaction involved acquisition of 15 distribution
facilities located throughout Sweden, for an amount of around 330
million euros. These distribution facilities are leased to Swedish
Post Office. Originally, Deutsche Bank Real Estate Private Equity
Group and a Swedish Pension Fund - Alecta, owned these properties
through a holding company. KFH contributed the equity portion of 100
million Euros for this transaction, and this will be structured into a
new Fund, and subsequently sold to KFH’s customers. |
