Kuwait Finance House (KFH0 announced that it has acquired Kanata Lakes Apartments, which consists of 146 units. This is KFH’s second acquisition made through the Killam partnership.
International Real Estate Department Manager Ali Al-Ghannam revealed that this is the first real estate acquisition deal in Ottawa, and added that this deal aims to use the collective experience of KFH and Killam Properties to make valuable real estate acquisitions; thus creating premium real estate opportunities. He explained that such a strategy will increase KFH’s profit rate and cash inflow.
In addition, Al-Ghannam mentioned that the 10 storey building is located next to shopping malls and restaurants, and 55% of the building was rented in a short while. He expected that the building will generate good profits once all units are rented; especially that the 205,000 square foot building has flats with various spaces.
Moreover, he stressed that this deal comes as part of KFH’s efforts to geographically diversify its real estate portfolio that reaches across North America, south East Asia, and Europe. The portfolio operates in various fields, such as industrial real estate. He went on to say that KFH has long extensive experience in the real estate markets of the countries it operates in, and is keen to establish partnership with mega companies. This allows KFH to take advantage of the positive developments witnessed in those markets. He said that KFH targets prime real estate that have high operation rate, which allows for continuous profits and an increase in the capital value while the building is being rented. He noted that KFH limits risks through initiating real estate investments in various markets, in order to achieve rewarding revenues.
It is worth noting that Killam Properties is one of the biggest real estate companies in Canada, where it owns and manages 8957 residential units in Canada, and also owns 173 premium properties.