Al-Nesf: Expected annual return for KFH Local Real Estate portfolio 6%

The total profit offered by the Asian Real Estate Fund in 3 years reached 40% after distributing 6% lately over its investors after the fund was liquidized, while KFH Local Real Estate portfolio is expected to distribute its quarterly profit by 6% annually by the end of this month. It is to be noted that KFH Real Estate Fund in Turkey was extended after offering 10% as annual distributions.

Al-Nesf explained in a press release that the fund offered 6% as capital profits before being liquidized and its capital reached $100m after 3 years of investments, where it distributed 9% annually and achieved while exiting 16% as capital profits, which means that the fund offered its shareholders total profits that reached 40% while it was operating and after it was liquidized.

The fund was established to develop the biggest residential and commercial compound in Malaysia called Pavilion, which is located in Kuala Lumpur. The recent distributions are the sum of the total sums that were kept by the manager of the fund earlier to cover for any expenses that might arise as a result of liquidizing the fund.

Al-Nesf mentioned that the KFH Real Estate Portfolio was established during the second quarter of this year and its KD50m capital was invested in investment and commercial real estate in Kuwait. It is expected that the portfolio will distribute by the end of this month 6% quarterly profit every year. The 5 year portfolio consists of 70 commercial and investment real estate that are distributed among various areas in Kuwait, which allows diversification in revenues.

He went on to say that these distributions clearly reveal the distinguished performance of KFH's fund that are famous for granting highest return, in addition to preserving the quality of the asset that is eventually liquidized.

He noted that Al-Nebras 2 Fund that offers 8% annually was established to develop Iskandar City, which is one of the largest real estate projects in Malaysia and south East Asia with $15bn in investments and can be renewed after 5 years.

He noted that KFH decided to extend the operating period of its real estate fund in Turkey that has a capital of $15m, since it continues to distribute 10% as annual profits for shareholders. The fund is used for renting 60,000 square meter warehouses and has rental contracts with logistic companies that are covered for no less than 5 years, which ensures regular cash flow from the rental of the warehouses and some offices of the companies.

He also mentioned that the fund was designed as a unique investment product in conjunction with KFH-Turkey to benefit from the needs of the Turkish market for this type of profitable real estate investment, especially that the fund's real estates are located near Ataturk International Airport, which is an added value for the renting companies that work in transportation and storing.