Kuwait Finance House (KFH) through its subsidiary Kuwait Finance House Malaysia (KFH Malaysia), which teamed up with the Singapore-based Pacific Star Group, will market US$250 million of the Baitak Asia Real Estate Fund to investors.
The fund will invest in Asian countries that enjoy a rising GDP, such as Malaysia, Singapore, South Korea, Thailand, Indonesia and China. These will involve dealing with a range of targeted assets comprising office, residential, commercial and industrial property, in addition to investments in real estate development projects in key areas.
Ali Othman Al-Ghannam, head of the international real estate department of KFH, indicated that investments under the fund were expected to realize an annual return of up to 10%, with a minimum investment of US$25,000. The fund has an expected tenure of five years, extendable for two periods of one year each, with a quarterly distribution of cash dividends. It is expected to achieve an internal rate of return of over 15%.