Kuwait’s largest financial institution, National Bank of Kuwait (NBK) launched its second real estate fund, the Watani European Real Estate Fund. The new Fund will compliment NBK's existing US offering by investing in properties in Continental Europe. The minimum investment amount is €100,000 ($97.880) with additional investments of at least €100,000.
With interest increasing in this asset class, NBK is responding to investor demand by launching the Fund with an offering period starting on October 6 and ending on October 31. This long-term investment vehicle is designed to achieve an expected return of between 12-16 percent per annum over its five to seven year life.
According to Genaral Manager of Investment Banking, Asset Management and Treasury Group at NBK, George Nasra, returns will be achieved through investing in a diversified portfolio of European real estate properties in major Continental European countries, which offer superior growth or value opportunities.
Real estate funds are an ideal building block for enhancing and safeguarding the assets of any investor who wishes to expand his or her investment portfolio. They can be particularly beneficial to investors who are heavily concentrated in more traditional asset classes since real estate funds have weak correlation with stocks and bonds, are generally less volatile, and thus are a good way of diversifying a portfolio.
The Fund will generate its returns by investing in a diversified portfolio of European real estate properties that provide superior growth or value opportunities. Part of the returns will be generated as income which will be paid to investors on a quarterly basis, added Nasra.
It will be fully diversified by spreading its investments between different countries and across several sectors. The Fund will invest in France, Germany, Italy, Iberia and the Benelux region with smaller investments permissible in Scandinavia, the Czech Republic, Poland, Hungary and Greece. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
