By Andy Sambidge
Kuwait Finance House acquires 146-unit residential development in Ottawa
Kuwait Finance House (KFH) on Monday announced that it has acquired a residential development in Canada for $42.5m, its second acquisition this year.
It said it has bought Kanata Lakes Apartments, which consists of 146 units in Ottawa, as part of KFH's agreement with the Killam partnership.
Ali Al-Ghannam, international real estate department manager, said the 10 storey building was located next to shopping malls and restaurants, and 55 percent of the building was rented.
He said he expected the 205,000 sq ft building to generate good profits once all units are rented out.
The deal comes as part of KFH's efforts to geographically diversify its real estate portfolio that reaches across North America, south East Asia, and Europe.
He said that KFH would continue to target prime real estate.
Killam Properties is one of the biggest real estate companies in Canada, where it owns and manages 8,957 residential units and also owns 173 premium properties.
Last December, KFH announced the acquisition of its first residential apartment complex in Canada in a deal worth about $32.5m.
The purchase of the newly constructed 180 Mill Road Apartments, a 127-unit complex in downtown London, Ontario, was 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.
In all fairness wouldn't it be nice if a Canadian firm could also buy property in Kuwait and rent to locals?
Thats not the ways this game is played Andy. We sell they buy .