"KFH's interest in global real estate market investments represents a strategic initiative that aims at enhancing KFH's position in the real estate sector." Stated Ali Othman Al-Ghannam, manager – international real estate department of Kuwait Finance House (KFH). Real estate property constituted a substantial part of KFH's investment portfolio. This is attributable to the rapid expansion of real estate property in KFH's records of success in real estate investment." He explained.
Contributing to the inaugural ceremony of "Middle East Real Estate Investment" Conference, lately held in Dubai under platinum sponsorship by KFH, Al-Ghannam stressed that real estate market is promising. He also emphasized that this market should be activated by finding instruments that can contribute to its development, utilize the available opportunities, and carefully study the global markets prior to deciding to enter them.
"KFH has been eagerly creating opportunities leading to further benefits to customers via programmed acquisition of real estate asset portfolios." Al-Ghannam mentioned. "In most cases, investment vehicles are structured by rolling over individual properties into a diversified asset portfolio, enabling investors to subscribe into it and obtain a continuous flow of earnings and capital gains." He elaborated.
"KFH targets properties with outstanding locations and high operation rates." He continued, "This allows uninterrupted cash profit, and positive forecast of leverage after studying the project. These investments are entered into in conjunction with other real estate companies as partners or consultants in asset acquisition, and adding value thereto." He explained.
During his address, Al-Ghannam briefly defined certain funds that greatly contributed to the benefit of KFH and its customers. He highlighted the performance of these funds, and the earnings and gains attained during the investment period. These include the "Ithmar Real Estate Fund" in the UK, "Al-Mumayaz Industrial Real Estate Fund", and "Elderly Welfare Fund" in the US.
Al-Ghannam highlighted "KFH Asian Real Estate Fund", which has been recently launched by KFH and met intensive response by investors, who wish to subscribe into the fund. The duration of the fund is 5 years, renewable for 2 periods, of one year each. It distributes dividends quarterly, and it is expected to generate an internal rate of return (IRR) exceeding 15%. He noted that the Asian markets of various areas have attracted numerous investors into several business activities.
Al-Ghannam participated in a seminar attended by representatives of a number of major real estate market players. During the seminar, he gave KFH's perspective and strategy for real estate markets, and its future expectations to continue the cycle of success in this area.
The conference, held on the CEO and decision makers level, has attracted intensive response of the companies operating in real estate investment, regionally an globally. It is a distinctive forum for real estate market dealers, thus exploring the future investment opportunities in this sector, while discovering the real volume of offers on Middle East real estate markets.