CEO at Kuwait Finance House KFH Mohammad Al-Omar said that the transaction that has been held, in which KFH had sold one of its investment real estate with KD 50 mln, and it logged KD 26.3 mln as a net profit, is considered a lucrative as the profit would be added to the financial statements for Q2 or Q3 of this year, when procedures will be done.
Al-Omar added , in a press release , the transaction comes as part of KFH’s strategy, which includes the restructuring of investments and taking advantage of the market developments; specially that the real estate market that is currently witnessing an increase in demand and high value. He stressed that the transaction coincides with the restructuring plans of KFH’s real estate portfolio, and that real estate investment is an essential part of KFH’s strategy.
Moreover, Al-Omar stated that KFH will reemploy the liquidity collected from the selling operation in investment and financing channels, which include the development of real estate investment that will achieve rewarding returns. He explained that KFH has an ambitious plan to employ liquidity whether achieved through deals or the coming increase in capital, in order to accomplish strategic objectives that will positively reflect on the bank’s financial and credit status during the coming period.
Furthermore, he said that the transaction will have a profound effect on the local real estate market, not to mention that it will cement the trust in KFH’s positive role that it has been playing since establishment; specially that local real estate market is considered to be a pivotal pillar in the national economy, an a key source to boost many sectors of the economy.
In addition, Al-Omar noted that KFH is about to complete its arrangements to start subscriptions in the increase of its capital by 20 %, and this will achieve KD 64 mln through offering 639 mln shares to shareholders. Price per share is 500 Fils, and the capital after the increase will climb to KD 384 mln, which reinforces KFH’s overseas expansion plans, the development of its local market share, the execution of development and expansions plans in various businesses and services, to continue cementing its means and programs to develop mechanisms, which will allow the bank to enhance its status, in addition to its local, regional, and international leadership. KFH has lately tracked many investment opportunities in international markets.