Kuwait Finance House (KFH) has made its initial acquisition for an upcoming income-producing real estate portfolio in the Nordic region that will concentrate its investments on high-quality long lease properties. The acquisition is made under KFH's existing pan-European real estate fund.
With an underlying property value of SEK 475 million (approx. 52 million), the first Nordic acquisition is a logistics property from a Norwegian fund managed by Ness, Risan & Partners and Swedish property company Wilfast Förvaltning. The 70,000-m² property is fully let to the Ahlsell Group and is the company's central distribution warehouse.
Leimdörfer served as financial adviser to KFH in the transaction whilst Gernandt & Danielsson provided legal counsel. Ernst & Young and Trowers & Hamlins set up the required Islamic finance structure and Aareal Bank provided third-party finance.
The acquisition marks a return of KFH into the Nordic property market. In 2002, KFH acquired a 395,000-m² logistics property portfolio in Sweden with Swedish postal service, Posten as anchor tenant. Following five years of successful active asset and investment management including additional investments and extensions, the portfolio was divested to Norwegian investor Acta in 2007.
"We look forward to pursuing additional investments in the Nordic region, targeting income producing properties with strong cash flows. The Nordic region represents an attractive alternative both in terms of risk but also because it suits Shari'a compliant investors," says Ali O. Al-Ghannam, International Real Estate Department Manager at KFH.