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KIA appoints Markaz to create property fund

on Nov 19, 2012

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Kuwait Financial Centre, Markaz, has been appointed by the Kuwait Investment Authority to manage its National Real Estate Portfolio.

The agreement will see Markaz set up and manage a portfolio of properties with a value of not more than $885.7m (KWD: 250m) over a ten-year period.

This would equate to around 28.6% of all of the assets under management held by Markaz at September 30, 2012. Fees will be dependent both on the amount invested and the portfolio's returns.

Markaz already manages several properties in Kuwait through the Markaz Real Estate Fund, which was set up in 2003. It has bought and developed 38 properties and has a net asset value ofover $280m.

Since 2005, it has also had a fund which has been managing iinvestments across the Middle East including Lebanon, Saudi Arabia, Jordan, Syria and the UAE. It is currently building residential plots at Al Khobar in Saudi Arabia and is aiming to produce gross returns of 20% on investments.

The firm's executive vice-president of MENA Real Estate, Bassam Al-Othman, said: “Markaz manages real estate assets by establishing and managing real estate funds and portfolios; buying and managing revenue-generating real estate; investing in properties with potential value improvement; and developing real estate across various sectors.

"Our team is experienced in project development and closely manages development operations by monitoring its progress, quality and cost through financial and technical reviews in addition to progress reports, field visits and workshops.
Markaz also conducts extensive studies on supply and demand in local real estate market.”