KFH Asian real estate achieves 40 pct, local investors to receive 6 pct

16 September 2009 , By Zawya

Kuwait Finance House (KFH) successful policy affiliated with its Asian real estate fund was crowned by a profit of 40 percent over the past three years, while investors of local real estate portfolio are to receive quarterly profit of 6 percent by the end of September, KFH said on Monday The policy which focuses on assets which high returns based on thorough risk studies led to this success, said the VIP Financial Service Department Manager at KFH Talal Al-Nisf.

The annual distribution of six percent of the profit would be distributed after the portfolio is liquidized, he added.

Total profit that shareholders received from the fund with a capital of USD 100 million while the portfolio was operating reached 40 percent, and another 40 percent after liquidation, he said.

The fund was established to develop Pavilion compound in Kuala Lumpur, Malaysia which is the biggest residential and commercial project in the country, he said, adding that the recent distribution was previously allocate to cover expenses resulting from liquidation.

Real estate portfolio established during the second quarter of 2009 with a capital of KD 50 million s directed towards local real estate investments, he said.

It is expected that the five-year portfolio will distribute the six percent annual quarterly profit by the end of this month, he added.

Moreover, Al-Nebras 2 fund established to develop the Iskandar city in Malaysia and which offers eight percent of the profit yearly can be renewed after five years, he said.

Meanwhile, KFH<http://www.zawya.com/cm/profile.cfm/cid5083> decided to extend the operating period of Turkey's real estate fund with a capital estimated at 15 million where shareholders are offered a 10 percent of the profit.

The fund was established for renting 60,000 square meter warehouses, he said.