KFH receives ‘Best Islamic Real Estate Finance Provider’ award Award affirms 33 years of continued efforts: Al Omar

KUWAIT CITY, May 14: Kuwait Finance House “KFH” received the best Islamic real estate finance provider in the world from Global Finance, the world prestigious magazine. This comes as part of the awards the magazine granted to world best financing institutions in 2011. The awards are granted based on an assessment conducted by experts from around the world who participated and studied the role of “KFH” in real estate activities since its inception, as well as its various contributions to the field of finance and real estate development.

Despite the economic dimension involved, these efforts stem from a social perspective and set of values focusing specifically on the importance of residential units in the life of a typical Kuwaiti family. It also touches upon the stability of the society in general and the achievement of Islamic banks part in the reconstruction of earth, serving the development efforts and progress of civilization.
Commenting on the prize, Mohammed Suleiman Al-Omar, KFH CEO, said that it confirms the historic role KFH has played in the field of finance and real estate development for 33 years as KFH provided real estate funding of more than a billion dinar.

More than 30 thousand Kuwaiti families benefited from these funds. In addition, KFH contributed in the establishment of five real estate companies specializing in construction, real estate development, real estate maintenance and management, and construction projects both inside and outside Kuwait.
Al-Omar added that KFH provides an excellent range of real estate services, which brought about a shift since its launch in the market. These services provide the Islamic compliant option which suits KFH customers in meeting their real estate needs such as Murabaha, Ijara, and Istisna and other financing structures.

Moreover, KFH provides other support services, most notably the real estate evaluation accredited by official and regulatory bodies and agencies, in addition to the extensive expertise which provide consulting services on market movements and various legal and regulatory developments for KFH clients seeking to purchase real estate properties.

Al-Omar observed KFH role in supporting the government efforts in providing residential care to citizens. This role continued since the inception of KFH stemming from basic conviction that providing housing appropriate for citizens and families is an essential factor for societal stability.

It supports families to achieve a feeling of belonging to homeland and capacitating individuals towards giving and devotion. As such, KFH assumes responsibility for long term credit risks, and offers stable rates over contractual periods. This comes with many advantages aimed at mitigating burdens associated with the process of purchasing a real estate property on citizens.

KFH allows a grace period of two months for repayment with insurance of indebtedness and follow up administrative and legal procedures on behalf of the client to save time and effort and implement the expertise that may not be available to many individuals.

He added that KFH branches currently receive hundreds of clients seeking financing for residential property following a decision by the Court of Cassation allowing KFH and Islamic banks to conduct basic real estate mortgage services to complete purchases and sale of real estate in accordance with the applicable Murabaha system.

The real estate portfolio recently established by Kuwait Investment Authority for a capital of one billion dinars which KFH will initially manage partly KD 250 million, Al-Omar said that the Authority’s decision reflects the confidence and prestige. KFH brings weight to real estate market given its outstanding experience gained from the management of a number of real estate portfolios during the previous years as a professional and impartial assessment authority accredited by relevant stakeholders in the Kuwaiti market.

Al-Omar pointed out that the portfolio targets investments in real estate and trade sectors and aims to achieve good returns compared to other sectors during the next phase. The portfolio seeks to achieve good revenues in the medium and long terms, by trading in selected properties.

Al-Omar said that KFH participates in or leads a group of globally important real estate development projects estimated at billions of dollars in the Gulf area and around the world. Most notably among these projects in the Gulf area is Diyar Al Muharraq; one of the largest integrated construction projects to be carried out by KFH in Bahrain. The area of the future city is estimated at 12 square km, with a total value of $3.2 billion.

The project is planned to be built as a modern city with integrated services and provide affordable housing options for middle-income employees. The planned dwellings are estimated at 30 thousand units, enough to house more than 100 thousand inhabitants, or about 10% of the population of Bahrain. The project contains 1200 housing units for low-income employees.

Durrat Al Bahrain Project with a cost of more than $3 Billion is considered an important step to develop the methods of living and particularly the family tourism sector in the Kingdom. The project accommodates around 30 thousand residents permanently along with four thousand visitors a day.
The project is be built on an area of 20 square kilometers reclaimed from desert land and sea waters forming the basis of a residential, tourist and recreational area at world standard. The area comprises 13 islands, including 2000 villas, 3 thousands apartments, one hotel, recreational and tourist facilities, golf course, sea club and shops.

KFH Bahrain also adopt the Industrial Oasis Project on an area of 152 thousand square meters in the Bahrain International Investment Park, an area of recent focus on technology, manufacturing, and services sector. The area is designed to attract added value investment activities.
KFH latest projects in the United States, Canada and Europe, Chicago Project is a residential property to be built in Chicago city with a total cost of $242 million. The project building has 40 floors and more than 80 apartments.

Another project is establishing a real estate partnership for a value of $450 million with UDR Company in an income-generating real estate residential project in a number of major cities in the United States. In Canada, KFH has recently signed a real estate partnership agreement with Killam Properties; a Canadian company specialized in real estate activity to acquire residential real estates for a value estimated at CAD 450 million. In addition, KFH owned momayz2 Industrial Properties Fund in the USA which manages more than $68 in income-generating real estates.

In South East Asia and China, KFH Malaysia participates in “A Pacific Ltd” to establish new medical centers expected to provide health care services to take advantage of the high returns, growth and expansion in the scope of this activity in Asia.

Moreover, KFH participates in Medini Project, the largest real estate development project in Malaysia, known as Iskandar City. This area is planned to be a link between Malaysia and Singapore in preparation for the integration of services between the two countries.

The project is expected to achieve a total value of developmental exceeding $6 billion in the next 10-15 years. To add, KFH has also invested $275 million in “Peninsula Real Estate Project”, the largest real estate development project in Asia, located between China and Hong Kong in Shenzhen area.
The total value of the project is estimated at $3 billion, and is ranked as first class, on an area of 300 thousand square meters. Prior to that, KFH participated with $135 million in the process of the management, development, and commercialization of the giant “Pavilion” Tower, worth a total value of 1.3 billion dollars. The project is located in the heart of the capital Kuala Lumpur, in the business district, called the Golden Triangle. The project occupies an area of 130 thousand square meters.




 

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