KUWAIT: KFH Capital, the investment arm of Kuwait Finance House Group (KFH), has announced the listing of "KFH Capital REIT Fund", the first local real estate investment trust, that will be listed on Boursa Kuwait. The listing confirms the integrity and distinction of KFH Capital's investment products as well as the added value it provides by launching investment tools with healthy returns and an appropriate structure to meet the market needs and customers' aspirations.
Chief Executive Officer at KFH Capital, Abdulaziz Nasser Al-Marzouq said that due to the outbreak of Coronavirus pandemic and the lockdown in Kuwait and the world, the listing has been postponed from March to September 1, 2020 as per the applicable procedures. The company had previously completed the fund's capital and obtained its final license in October 2019."
He added:" Praise to be Allah Almighty and to the fruitful efforts and cooperation with CMA and Boursa Kuwait, we completed the listing requirement on the official stock exchange. KFH Capital REIT is the first licensed and listed fund on Boursa Kuwait to invest in income-generating real estate assets."
Al-Marzouq confirmed that Listing would provide the unitholders with more flexibility and liquidity, exit option and trading (buy and sell) opportunities as well as healthy returns through the monthly distributions. Al-Marzouq added that: "The fund aims to achieve cash returns by investing in leased and income-generating real estate assets in Kuwait excluding the land and real estate development projects, ensuring limited risk and sustainable cash flows from these assets. The fund distributes no less than 90 percent of net collected income after deducting the expenses and provisions.
"Equipped with professional team with long experience in the local real estate market, the listing followed a successful subscription with more than 300 subscribers and raised KD 23.6 million within two weeks," he said. Al-Marzouq indicated that this success confirms the investors' confidence in the method and scope of the fund which is expected to achieve profitable returns and high liquidity for its unitholders and strengthen KFH Capital's position as the best investment destination in the region.
The fund focuses on the diversified income- generating real estate assets in various sectors in Kuwait. It also seeks the investment, commercial, industrial and other sectors that are legally permitted to invest in, taking advantages of the benefits and developments of various real estate sectors in the local market.