Kuwait's KFH seals first Canadian real estate investment

  • Share via facebook
  • Tweet this
  • Bookmark and Share
Kuwait Finance House has announced the acquisition of an apartment complex in Canada.

Kuwait Finance House has announced the acquisition of an apartment complex in Canada.

Kuwait Finance House (KFH) has announced the acquisition of a residential apartment complex in Canada in a deal worth about $32.5m, its first as part of a joint venture agreement.

The purchase of the newly constructed 180 Mill Road Apartments, a 127-unit complex in downtown London, Ontario, is the first property held under KFH's joint venture with Killam Properties.

The investment firm signed the joint venture agreement last year with Killam with the objective of acquiring residential properties in Canada.

Under the agreement, the partners are committed to contribute equity up to C$100m, representing real estate acquisitions of approximately $250m, KFH said in a statement.

Seventy-five percent of the equity comes from KFH and Sigma Real Estate Advisors, its real estate advisor, with Killan providing the other 25 percent, the statement added.

The purchase price of 180 Mill Road was C$33.3m ($32.5m), with KFH/Sigma's ownership interest being C$25m.

KFH said its expected rate of return including fees will be 10-12 percent upon exit.

Construction of the 12 storey apartment building, with two levels of underground parking, and seven adjacent townhouses, was completed during the first quarter of 2011.

The building is located in the Richmond Row area of downtown London, one of London's finest shopping, restaurant and entertainment districts.

Still in its initial lease-up stage, the building is currently 60 percent occupied.

"We are very pleased to announce 180 Mill Road as the first real estate acquisition under the joint venture with Killam," said Abdulnaser Al-Subaih, KFH's assistant general manager.

"The joint venture currently has two additional properties under contract. One is in Ottawa and is close to completion with the closing scheduled for the first half of 2012 and the other property is newly constructed and is located in the Greater Toronto Area and is subject to lender and CMHC approval."

Related:

Market Performance

Kuwait Finance House - Kuwait
810.0
0.0 0.0 (%)
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Do celebrity branded projects ever work?

Do celebrity branded projects ever work?

The long list of celebrity-endorsed real estate developments...

1
Is this the end of the Gulf’s Indian cash dash?

Is this the end of the Gulf’s Indian cash dash?

From currency woes to taxation loopholes closing and a clampdown...

2
Mall talk

Mall talk

Plans for Dubai’s Mall of the World have made headlines all over...

1
Most Discussed
  • 24
    World's most pierced man refused entry to the UAE

    Tolerance has its limits everywhere including Dubai and those who considered Dubai a lawless circus were held accountable...so thank you Dubai authorities... more

    Thursday, 21 August 2014 10:51 PM - Khalil
  • 23
    Baby NOT on board?

    Some of you cry babies need to get your own personal apartments on the plane ! You cry more then the babies I have seen in my travels. LOL more

    Thursday, 28 August 2014 9:10 AM - Jim
  • 21
    Israel “must be punished” over Gaza, says Dubai police chief

    This high moral ground that Mick is talking abt sound very familiar. May I remind Mick that the US & its British ally alone killed over 1 million innocent... more

    Thursday, 7 August 2014 4:12 PM - Mathew