Kuwait Finance House (KFH) announced that it has established a joint venture with Killam Properties Inc. (Killam) to acquire up to CDN$450 million of multi-family residential properties in Canada, which will allow it to operate in a new market that reinforces its global expansions, and achieves more success in its real estate portfolios and funds that are found in Europe, the United States, South East Asia, and China. The agreement is considered to be the first real estate investment for KFH in Canada, not to mention establishing partnerships and cooperation with strategic allies in promising markets, since it comes after a similar joint venture agreement that KFH had signed with UDR American Real Estate Company worth USD 450 million.
Assistant General Manager for the Investment Sector at KFH Abdul Nasser Al-Subaih stated in a press release after signing the agreement that was attended by the International Real Estate Department Manager at KFH Ali Al-Ghannam, Killam’s CEO Philip Fraser, and First secretary of the Embassy of Kuwait in Canada Mr. Ziad Al-Anbaie, that investing in strategic real estate provides good cash flow. He added that this agreement takes full advantage of the positive developments in the Canadian real estate market through cooperating with the Canadian partner that has great experience in the real estate field. He went on to say that this investment is a continuation of KFH’s strategy to add value for its partners, clients and shareholders. KFH believes the Canadian market offers exceptional value, and intends to make further investments in the country going forward. KFH looks forward to working with Killam and their experienced management team.
Meanwhile, Killam’s CEO Philip Fraser welcomed the partnership with KFH that is considered to be one of the largest Islamic banks in the world, and said that this partnership will allow the Canadian company to expand its property portfolio and increase its cash flow, in addition to increasing its experience by working according to Shariah compliant contracts and systems. He added that Killam is one of the key real estate companies in Canada owning and operating 8,957 apartment units in Atlantic Canada. Starting with its first acquisition in 2002, Killam has built an established portfolio of 173 high-quality properties and a strong operating platform. Killam’s management is committed to building on this foundation, maximizing the return on its assets, and continuing to grow geographically through acquisitions and new partnerships.
Al-Ghannam explained that KFH intends to use its experience in various markets to establish an integrated real estate investment system in Canada, and that residential real estate will be its first step to be followed with further investments in industrial, administrative, rehabilitation or senior citizens care real estate, according to market conditions. He added that KFH had participated in investments in the United States, which is close to Canada, in addition to markets in Europe and South East Asia.