Kuwait Financial Centre (Markaz) has announced that its real estate fund closed 2025 on a successful note delivering a total return of 9.7%, comprising 4.7% from cash distributions and 5% from growth in the capital value of its assets.
During 2025, the Fund recorded net profits of KD7.2 million ($23.3 million), equivalent to 132.4 fils per unit, supported by active fund management, strong operating performance across its real estate portfolio, stable rental income and the realisation of capital gains from the revaluation and sale of certain assets.
By the end of 2025, assets under management for the Markaz Real Estate Fund reached approximately KD81.1 million ($263.3 million). The Fund also continued to maintain stable occupancy rates and high-quality rental cash flows, which was reflected positively in the returns achieved.
As one of the early real estate funds in Kuwait, the Markaz Real Estate Fund benefits from a long performance record exceeding 24 years, with an annual internal rate of return of 7.7% since inception, alongside regular monthly cash distributions, said the statement.
This reflects the strength of its business model and its ability to generate stable returns across different economic cycles. The Fund is managed in accordance with sharia principles and is available for investment to all residents of Kuwait including expats under a comprehensive regulatory framework with high standards of governance and transparency.
As one of the early real estate funds in Kuwait, the Markaz Real Estate Fund benefits from a long performance record exceeding 24 years, with an annual internal rate of return of 7.7% since inception, alongside regular monthly cash distributions, said the statement.
This reflects the strength of its business model and its ability to generate stable returns across different economic cycles. The Fund is managed in accordance with sharia principles and is available for investment to all residents of Kuwait including expats under a comprehensive regulatory framework with high standards of governance and transparency.
Stable returns and a forward-looking outlook
Speaking on the occasion, Markaz Real Estate Fund Executive Committee Member Abdulrahman Sulaiman Al Sanad said: "The 2025 results reflect the effectiveness of the Fund’s strategy in achieving a strong balance between regular cash distributions and growth in the capital value of assets, through professional management of a diversified real estate portfolio within the Kuwaiti market."
"This performance demonstrates the Fund’s ability to meet the expectations of investors seeking stable periodic income and balanced growth, particularly amid market volatility," he stated.
Al Sanad said: "We continue to focus on improving operational performance and enhancing asset efficiency to deliver sustainable long-term value for our investors, within a sharia-compliant investment framework and a disciplined investment approach centered on maximizing value from existing assets and leveraging selective opportunities that enhance portfolio quality and long-term returns."
Through its real estate fund, Markaz continues to offer income-generating real estate investment opportunities, supported by monthly cash distributions and a flexible, liquid investment structure that enables investors to build their positions gradually without the operational challenges associated with direct property ownership.
The Markaz Real Estate Fund is overseen by an integrated governance ecosystem that includes independent auditors, a custodian, an investment controller, and a registrar, reducing operational risks and strengthening investor confidence, he stated.
"The Fund also intends to continue improving asset efficiency and managing capital with flexibility, supporting the sustainability of cash distributions and keeping pace with developments in the local real estate sector," he added.
Application of best environmental practices
As part of its commitment to sustainability and the application of best environmental practices, the Fund announced that Al Nada Residential Tower has officially received LEED Gold certification, in recognition of the building’s efficiency in energy and water consumption, indoor environmental quality, and adherence to sustainable construction standards.
This contributes to lowering operating costs, enhancing the long-term value of the asset, and aligning with local and global responsible investment trends.
In his assessment of the real estate sector, Al Sanad said the sector is witnessing promising opportunities in housing and in the investment segment in Kuwait, driven by growing infrastructure investments and structural developments that are reshaping these segments.
The next phase will feature a key focus among institutional investors and family businesses with large real estate portfolios on restructuring their portfolios to be more future-ready, and on unlocking value through reorganisation, including separating the role of the investor from the role of the asset manager, which enhances operational efficiency and improves the quality of long-term returns, he added.-TradeArabia News Service
