Kuwait Finance, Killam in Canada property venture

Islamic lender Kuwait Finance House (KFH) said it had set up a joint venture with Canada's Killam Properties Inc to buy up to C$450m of residential property in Canada.

The joint venture is part of the Kuwaiti lender's plans to expand in global markets, it said.

"Residential real estate will be its first step to be followed with further investments in industrial, administrative, rehabilitation or senior citizens care real estate, according to market conditions," KFH said in a statement on Wednesday.

KFH did not state its share of the venture.

Last year, KFH tied up with US apartment building owner UDR Inc to buy high income property in the United States. The venture seeks to acquire up to $450m, in major cities in the United States.

In December, the lender signed a $242m real estate deal in Chicago, owning a 95 per cent stake in the project.

Gulf Arab investors have been holding on to funds for months but are now buying into Western real estate again to take advantage of lower valuations.