Kuwait Finance and Investment Company KFIC has announced acquisition of a medical center building in California for $27 million.
The acquisition was carried through a consortium through buy and lease back practice - compatible with the provisions of Islamic Sharia. The building has an area of 45,277 square feet and is leased entirely for 15 years.
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Kuwait Finance and Investment Company KFIC announced their successful acquisition of an income generating real estate in the United States. The acquisition was carried through a consortium with group of investors through (buy and lease back) practice.
In this regard Tareq Mishari Al Bahar Executive Board Member at KFIC stated: Our strategic plans concentrates on finding investment opportunities that yields good returns with limited risks. And that can be achieved through acquiring a profit generating assets in safe geographic locations.
Al-Bahar then added: "We are keen on finding a variety of investment products that meets customers' expectations. And through the methodology that we are leading, comes beneficial results for the company and customers simultaneously."
We take this opportunity to extend our gratitude to our Board for their continuous support and to the executive management team for making such opportunities happen, through products offering.
In this occasion Shabnan Al Mutairi Head of Investment & Corporate Finance Division elaborated: "The property is located in San Francisco, California, USA. It is an acute medical center with an area of 45,277 square feet. The building is leased entirely by quasi-governmental entity for 15 years with an annual rent escalation of 2%.
Al Mutairi stressed that the process of the acquisition was compatible with the provisions of Islamic Sharia, Ijarah finance. With value of $ 27 million Dollars along with annual cash yield of up to 8%. It is noteworthy that the acquisition has been made through a unique investment structure that allows investors to have the maximum utilization of investment returns under the US law.
Al Mutairi then concluded: KFIC offers international real estate services through the research and identifying of unique opportunities. We assist customers with the evaluation and the management of the property as well. This process goes through an investment structure for our customers who wish to acquire an international real estate opportunities that well-matches their investment objectives.
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