Kamco, the top Kuwaiti investment company, with one of the highest assets under management (AUM) in the region announced that its real estate fund has bought a 16,500 square meter commercial land in Riyadh, Saudi Arabia, Trade Arabia reported.
Kamco Real Estate Yield Fund (KREYF) is an open-ended fund operates through investing in the real estate sector, directly and indirectly through purchase, sale, and lease of operating properties inside and outside of Kuwait.
Moving towards acquiring the property which includes storage space rented by one of the biggest retail companies in the region is a strategic element in KREYF’s main plan to increase revenues and returns for investors in the fund, Kamco said.
The company also announced the fund’s continuing success in terms reaching an average occupancy rate of 93%, while growing the fund’s size by 195% since inception, which quite shows the market demand for the income-generating products.
Furthermore, the fund managed to gain an increase in its return rate to 7.4% since inception, and to distribute $ 0.10 as cash dividends per unit for investors by the end of June.
“The acquisition move was a strategic one in terms of the property’s location, which overlooks four roads granting easy access in and out of the area,” Chief Investment Officer at Kamco, Khaled Fouad said.
“Apart from the location, the variety of additional investment advantages the property has to offer will help enhance the Funds’ performance as a whole,” he added.