With a capital of $250 m, and annual return of 8-10%
Subscription to Kuwait Finance House (KFH) Asian Real Estate Fund has witnessed increasing response by individual and corporate investors, from Kuwait and abroad, particularly from the GCC states", Said Ali Othman Al-Ghannam, Manager of International Real Estate Department of KFH. "The $250 m fund has been lately launched, and operates in various real estate areas, such as offices, industrial property, and housing land. It is expected to achieve annual cash earnings of 8-10%, with a minimum subscription of $ 25,000. He added.
In a press release, Al-Ghannam stated that several positive factors contributed to motivating investors to participate, mainly the distinctive structure of the fund, promising investment opportunities in the markets target by it, favorable growth rates of these markets, in addition to the broad experience and excellent reputation of KFH's investment opportunities in general, and international real estate field, in particular. "For example, several funds and portfolios performed well in the US and Europe, realizing high returns distributed during the investment period, or upon fund liquidation." He explained, "International real estate investment at KFH is a successful activity that makes it a destination for every investor who seeks the best returns with lowest risk." He elaborated.
The fund duration is 5 years, renewable for two periods, of one year each. Its dividends are quarterly, and it is expected to realize an internal rate of return (IRR) of over 15%. He mentioned, "The fund returns are generated following careful study of the developments of the currently flourishing Asian market. It enhances KFH's policy to diversify markets and assets, and to provide customers with the best investment opportunities." He continued, "The fund invests in Asian countries with high GDP, such as Singapore, Malaysia, South Korea, Thailand, Indonesia and China. Targeted assets range between office, housing, commercial and industrial properties, in addition to investment in real estate development projects in the major, vital areas, due to the increasing demand for investment in the various properties, based on the ever-growing inter-Asian trade." He commented.
"In light of the economic growth, the governments' encouragement and attraction of foreign investment, free movement of invested funds, high rates of investment in infrastructure, and urban expansion, the benefits to be achieved by KFH Asian Real Estate Fund can not be looked at in isolation from the economic developments in the Asian markets, especially that the fund will use geographic distribution strategy to diversify and mitigate risk of overall investment. He concluded.
The fund adopts a unique investment strategy that focuses on mitigating risk by distributing its investments in various parts of the targeted Asian countries. It seeks good, stable cash returns, and a capital growth by purchasing high-quality real estate assets, purchasing and developing land in strategic locations into housing or commercial buildings, to match the market demand.