Kuwait Financial Centre (Markaz) said it has successfully exited a commercial real estate investment in the US after achieving a net internal rate of return (IRR) of 17.44 % for its investors, exceeding initial estimates.
The sale of the industrial project in Phoenix, Arizona, was completed through its US real estate arm, Mar Gulf Management.
This comes in line with the initial business plan of the investment which involves the acquisition and development of a 15.91 acre site into two industrial buildings with a total area of 224,471 sq ft and the sale of the properties once they are leased.
Commenting on the move, Mar-Gulf Management President Sami Shabshab said: "We are delighted to have successfully executed the sale of our industrial project despite prevailing uncertain macroeconomic challenges triggered by the Covid-19 pandemic."
"The transaction is a strong testimony to the resilience of our investment portfolio and further strengthens our strong track record in the US market. I would like to thank our partners for their excellent execution and ability to deliver throughout the unusual circumstances we witnessed this year," he stated.
Shabshab expressed delight at the performance of its US portfolio having achieved five exits this year including the one at Arizona.
'The exits resulted in healthy returns and occurred across both our industrial and multifamily investments. The current market conditions will provide intriguing strategic opportunities in existing and new markets across the US, which we are ready to capture," he added.
Markaz Executive VP (Wealth Management and Business Development) Abdullatif W. Al-Nusif said: "Our international real estate program has and continues to deliver consistent performance both in the US and Europe. As a result, the program has witnessed a growth in assets under management driven by increased demand from our investors."
"We remain focused on expanding our portfolio in existing and new markets across the US and Europe, as well as capturing the unique opportunities that the coronavirus pandemic presents by building strategic partnerships with leading institutions in both markets," observed Al Nusif.
Markaz has been active in the US real estate market since 1977 with the launch of its first syndicated transaction. Since 1988, it has been conducting real estate transactions in the US through Mar-Gulf.
Over the past 30 years, Markaz and Mar-Gulf have been involved in the ownership and development of real estate properties in a variety of segments including industrial, retail, multifamily and office across the US with a total acquisition cost of over $1.65 billion.-TradeArabia News Service
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