Fund management to be a part of KIA's $3.6bn property investment project announced on Wednesday
Kuwait Finance House (KFH) will manage a $902m fund, as part of the Kuwait Investment Authority's $3.6bn real estate investment project, the Islamic lender said on Thursday.
Kuwait's sovereign wealth fund said on Wednesday it will invest $3.6bn in the local commercial property market, in a liquidity boost to the sector that will help lift plunging prices.
"The five year portfolio will focus on business real estate, as it has been most effected by current economic conditions and therefore is a candidate for achieving better returns," KFH assistant director general Imad Abdullah Al Thaqib said in a statement.
Kuwaiti real estate sales of commercial and investment property, excluding residential, rose 114.5 percent in 2010 compared to 2009, according to official data.
The Kuwait Investment Authority said it would benefit from the "steep plunge" in prices in the sector and aims for good returns, and would exclude residential property from its investments.