.png)
KFH Germany
KFH Kuwait
KFH Turkey
Contact Us
Branch & ATMS Locator
Kuwait City, 17 August 2009 - Kuwait Finance House (KFH), one of the world’s leading Islamic banks, has recently signed a USD450.0 million (RM1.6 billion) joint venture deal with UDR Inc. (UDR), to acquire high income-producing residential properties in major cities in the U.S. Under the deal, KFH’s participation is 70 percent whilst the remaining 30 percent stake rests with UDR, a leading U.S.-based real estate investment company. The transaction indicates that KFH is confident, the investment can maximise the best returns to shareholders and investors, whilst at the same time strengthen its global expansion policy, build strategic alliances with major companies, and utilise its expertise to achieve the best performance.
A signing ceremony was held in London, United Kingdom, on 14 August 2009, in which Mr. Mohammad Sulaiman Al-Omar, Chief Executive Officer, Kuwait Finance House was present. Meanwhile, UDR was represented by Mr. Tom Toomey, its President and Chief Executive Officer. In a statement, Al-Omar mentioned, “This venture is a continuation of the strategy for KFH Group, that focuses on the real economy, and an area in which KFH is familiar with. We are optimistic that it will add value to all parties involved including our partners, clients, and shareholders.”
He further added that KFH is keen on working with experienced partners such as UDR, with the current focus being on income producing assets. The venture will target real estate class ‘A’ properties that are less than seven years old, with a minimum value of USD20.0 million (RM70.4 million). It also intends to be fully invested over a two year investment period.
Al-Omar further expressed his vigilant optimism of KFH being back as a major player in the U.S. real estate market. The joint venture is seen to be a sequel to the Dana real estate portfolio that began in the 1990’s, and was subsequently followed by five real estate portfolios. He also noted that the U.S. economy has a strong influence globally, on which he indicated, “This is why KFH is keen to collaborate with a pioneering company like UDR, which has extensive experience in the field of multifamily properties, and possesses huge investments in selling, acquiring and developing real estate in most states and cities.”
Toomey on the other hand, stated that establishing a venture with a renowned Islamic financial institution like KFH, will allow UDR to continue growing its portfolio. He elaborated, “We look forward to invest and take advantage at every opportunity with KFH, a leader in the Islamic banking and financial industry. The mutual cooperation is considered to be an opportunity that will benefit both parties.”
Toomey also remarked that in addition to the market experience and exposure, UDR owns 50,000 apartments and thousands of houses that are being renovated all across the U.S. “We are well-equipped to have secure and rewarding investments for the company and its partners, which distinctly separates us from our competitors, locally and internationally,” he added.
At the same time, positive outlooks were also shared by Mr. Abdulnasser Abdulmuhsen Al-Subeih, Assistant General Manager of Investment Sector, KFH, and Mr. Ali Al-Ghannam, International Real Estate Department Manager, KFH. Al-Subeih mentioned, “We are targeting an internal return rate (IRR) of 12 to 14 percent annually, as we seek to focus on prime investment opportunities and diversify our investments portfolio.”
Al-Ghannam also supported this by saying, “As we are establishing our key presence in the U.S., we are still looking for more profitable market opportunities elsewhere, including the Gulf Cooperative Council (GCC) region, Southeast Asian countries, and China.”
A signing ceremony was held in London, United Kingdom, on 14 August 2009, in which Mr. Mohammad Sulaiman Al-Omar, Chief Executive Officer, Kuwait Finance House was present. Meanwhile, UDR was represented by Mr. Tom Toomey, its President and Chief Executive Officer. In a statement, Al-Omar mentioned, “This venture is a continuation of the strategy for KFH Group, that focuses on the real economy, and an area in which KFH is familiar with. We are optimistic that it will add value to all parties involved including our partners, clients, and shareholders.”
He further added that KFH is keen on working with experienced partners such as UDR, with the current focus being on income producing assets. The venture will target real estate class ‘A’ properties that are less than seven years old, with a minimum value of USD20.0 million (RM70.4 million). It also intends to be fully invested over a two year investment period.
Al-Omar further expressed his vigilant optimism of KFH being back as a major player in the U.S. real estate market. The joint venture is seen to be a sequel to the Dana real estate portfolio that began in the 1990’s, and was subsequently followed by five real estate portfolios. He also noted that the U.S. economy has a strong influence globally, on which he indicated, “This is why KFH is keen to collaborate with a pioneering company like UDR, which has extensive experience in the field of multifamily properties, and possesses huge investments in selling, acquiring and developing real estate in most states and cities.”
Toomey on the other hand, stated that establishing a venture with a renowned Islamic financial institution like KFH, will allow UDR to continue growing its portfolio. He elaborated, “We look forward to invest and take advantage at every opportunity with KFH, a leader in the Islamic banking and financial industry. The mutual cooperation is considered to be an opportunity that will benefit both parties.”
Toomey also remarked that in addition to the market experience and exposure, UDR owns 50,000 apartments and thousands of houses that are being renovated all across the U.S. “We are well-equipped to have secure and rewarding investments for the company and its partners, which distinctly separates us from our competitors, locally and internationally,” he added.
At the same time, positive outlooks were also shared by Mr. Abdulnasser Abdulmuhsen Al-Subeih, Assistant General Manager of Investment Sector, KFH, and Mr. Ali Al-Ghannam, International Real Estate Department Manager, KFH. Al-Subeih mentioned, “We are targeting an internal return rate (IRR) of 12 to 14 percent annually, as we seek to focus on prime investment opportunities and diversify our investments portfolio.”
Al-Ghannam also supported this by saying, “As we are establishing our key presence in the U.S., we are still looking for more profitable market opportunities elsewhere, including the Gulf Cooperative Council (GCC) region, Southeast Asian countries, and China.”
