TORONTO, April 7 /CNW/ - Kuwait Finance House ("KFH") announced today that it has entered into a joint venture with Killam Properties Inc. ("Killam") to acquire up to CDN$450 million of multi-family residential properties in Canada.
The initial program is to acquire CDN$250 million of multi-family residential properties within the next 24 months. The partners will contribute equity of $100 million with a $75 million contribution from KFH and $25 million by Killam for a holding period of up to seven years.
Sigma Real Estate Advisors assisted in arranging the joint venture, which intends to be fully invested over a two year period, subject to market conditions. Killam will receive asset and property management fees from the joint venture.
"We are very pleased to be making our first investment in the Canadian real estate sector," stated Abdul Naser A. Al-Subaih, Assistant General Manager for the Investment Sector of KFH. "The investment is a continuation of our strategy to add value for our partners, our clients and our shareholders. We believe the Canadian market offers exceptional value, and we intend to make further investments in the country going forward. We look forward to working with Killam and their experienced management team."
"We are pleased to be establishing a joint venture with a high quality partner like KFH," added Philip Fraser, Killam's President and Chief Executive Officer. "The venture will allow us to further expand our property portfolio and increase cash flows through property asset and management fees."
About Kuwait Finance House
Incorporated in 1977, Kuwait Finance House is one of the leading Islamic banks in the world with a market capitalization of USD$10 billion and total assets of USD$37 billion. KFH operates fully owned and independently functioning banks throughout the region including Turkey, Malaysia, Bahrain, Saudi Arabia, UAE, Singapore and Australia, in addition to establishing significant stakes in numerous Islamic banks both regional and international. Its investment activities span the US, Europe, South East Asia and the Middle East. KFH is positioned at the forefront of the Islamic Finance Industry in terms of international presence, strategic alliances, innovation and spectrum of activities. KFH has also maintained its solid ratings by international agencies which affirm its financial strength, the quality of its assets and its recognition globally. For further information on KFH visit www.kfh.com/english.
About Killam Properties Inc.
Killam is one of Canada's largest residential landlords, owning and operating 8,957 apartment units in Atlantic Canada and 9,290 manufactured home community (MHC) sites across Canada. Starting with its first acquisition in 2002, Killam has built an established portfolio of 173 high-quality properties and a strong operating platform. Management is committed to building on this foundation, maximizing the return on Killam's assets, and continuing to grow geographically with accretive acquisitions in Canada. Killam's common shares trade on the Toronto Stock Exchange (symbol:KMP). For further information, please visit www.killamproperties.com.
About Sigma Real Estate Advisors
Sigma Real Estate Advisors ("Sigma") is an investment advisory firm specializing in the Canadian, United States and Bermuda real estate markets. With extensive transaction, finance and research experience in both the private and public segments of the real estate industry, Sigma offers a full range of services to assist global private and institutional clients achieve their real estate investment objectives. Sigma was founded by Mr. Lou Maroun, formerly Chief Executive Officer of Summit REIT, which was acquired by ING Real Estate in 2006 for approximately CDN $3.3 billion.
Forward Looking Statement from Killam
The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein. Certain statements in this report may constitute forward-looking statements relating to our operations and the environment in which we operate, which are based on our expectations, estimates, forecast and projections, which we believe are reasonable as of the current date. Such forward-looking statements involve risks, uncertainties and other factors which may cause actual results, performance or achievements of Killam to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. For more exhaustive information on these risks and uncertainties, you should refer to our most recently filed annual information form which is available at www.sedar.com. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made and should not be relied upon as of any other date. Other than as required by law, Killam does not undertake to update any of such forward-looking statements.
SOURCE Killam Properties Inc.
For further information: For further information: Mr. Lou Maroun, Executive Chairman, Sigma Real Estate Advisors, (441) 536-1111, firstname.lastname@example.org; Philip Fraser, President & CEO, Killam Properties Inc., (902) 453-4536, email@example.com