Kuwait Finance House (KFH), the country's biggest Islamic lender, said it has signed a $242 million real estate deal in Chicago.

KFH owns 95 percent of the project, while the remaining is owned by Prism Company, the lender said in a statement. 'KFH will focus on income producing assets with attractive yields and guaranteed occupancy levels,' it added.

In August, the lender said it was tying up with US apartment building owner UDR to buy high income property in the United States.

The joint venture seeks to acquire investments of up to $450 million in major cities in the United States.

Gulf Arab investors have been holding on to funds for months after the region was caught up in the global liquidity freeze late last year, but are now buying into Western real estate again to benefit from lower valuations.-Reuters