National Bank of Kuwait (NBK) launched today a diversified real estate fund which is compliant with Islamic Shari'ah, the Islamic European Real Estate Fund. The investment objective of the Fund is to seek current income and capital appreciation from a diversified portfolio of investments in European real estate in accordance with Islamic Shari’ah principles.
Salah Al Fulaij, General Manager of Investment Services & Treasury Group at NBK explained that the Fund is a long-term investment vehicle designed to achieve an expected IRR of 12-15% per annum with an expected annualized net quarterly distribution of 5% during the Investment Period of one year and 7-8% thereafter. The Fund is denominated in Euro and suitable for investors with a long-term investment horizon who are seeking steady quarterly income with the possibility of capital appreciation at maturity.
Al Fulaij also added that the Fund will pursue its objective by investing in a well-diversified portfolio of office, retail, warehouse and residential properties that offer a balanced mix of core properties and properties that promise superior growth and added value potential. Special focus will be given to the German market, which currently offers good cash flow opportunities with potential for appreciation in value. The Fund may also allocate a portion of its investment funds to properties in emerging markets such as Russia and Turkey and possibly other emerging markets.
Pramerica Real Estate Investors, the investment advisor of the Fund, is a premier international real estate investment firm fully owned by Prudential Investment Management, Inc which Prudential Investment Management has combined assets under management close to US$31 billion, making them the one of the largest real estate managers worldwide. For over 20 years, Pramerica has been involved in cross border real estate investments in the U.S., Europe and Asia.
Wafra Capital Partners L.P., the Manager of the Fund, is a renowned manager of Islamic products. Wafra presently manages Shari’ah compliant funds in real estate, equipment leasing, and private equity, with assets approximately $4.5 billion.
The initial subscription period starts today, November 5th 2006 and will continue until November 23rd 2006. The minimum investment amount in the Fund is Euro 250,000 with additional amounts in multiples of Euro 10,000. The Fund is closed-ended and investors can only subscribe into the Fund during the initial offering period.
© 2006 Al Bawaba (www.albawaba.com)
