Kamco, a leading investment company with one of the largest assets under management (AUM) in the region, said its real estate fund has acquired around 16,500 sq m of commercial land in Riyadh, Saudi Arabia.

Kamco Real Estate Yield Fund (KREYF) is an open-ended fund that aims to invest in the real estate sector directly and indirectly by purchase, sale and lease of operating properties inside and outside Kuwait.

Kamco said the step towards acquiring the property, which consists of storage space rented by one of the leading retail companies in the region, is a key element in KREYF’s core strategy to increase revenue while achieving the best returns for investors in the fund.

In a related development, the company announced the fund’s ongoing success in terms of reaching a weighted average occupancy rate of 93 per cent and growing the fund’s size by 195 per cent since inception, which demonstrates the market demand for such income-generating products.

In addition, the fund managed to increase its rate of return since inception to 7.4 per cent and to distribute $0.10 as cash dividends per unit for investors by the end of June.

Khaled Fouad, the chief investment officer at Kamco, said: "The acquisition move was a strategic one in terms of the property’s location, which overlooks four roads granting easy access in and out of the area."

"Apart from the location, the variety of additional investment advantages the property has to offer will help enhance the funds’ performance as a whole," he stated.

According to him, KREYF has achieved a remarkable level of performance across all terms, especially in comparison to the performance of similar funds in the market since the date of inception.

"The fund managed to distribute quarterly returns that exceed those of a regular savings account for the sixth consecutive quarter. An increase in its volume of AUMs since inception, which represents 195 per cent, is a crucial element in the fund’s performance strategy to provide investors with consistent returns at the lowest possible risk," he added.-TradeArabia News Service