KBW Investments, a UAE-based portfolio group active in key sectors including construction, manufacturing and engineering, has announced the launch of Crestmount Capital, its premier flagship Sharia-compliant real estate investment fund (REIF).
KBW Investments, a company set up by chairman Prince Khaled bin Alwaleed bin Talal, said the launch of Crestmount Capital (Crestmount) was dedicated exclusively to the Islamic finance sector.
“Crestmount Capital is KBW’s flagship entry into the Islamic finance segment. Having explored a variety of investment vehicles and types, the company’s interest has now increasingly turned to activating our existing strengths in finance to work for the advantage of the sophisticated Islamic investor,” remarked Prince Khaled.
In tandem with the launch, the Dubai-based company has rolled out its new Crestmount Fund I, a fully Sharia-compliant REIF, with a capital of Dh267 million ($73 million).
Crestmount Fund I will immediately deploy the raised amount into five separate Australian Sharia-compliant projects at a local market value of A$100 million ($77 million), privately circulated the opening investment opportunity under the guidance of Amanie Advisors.
The projects targeted for the capital, at varying stages of progress, are residential developments conceptualized and developed by the largest Sharia compliant developer in Australia, PietyTHP Developments.
“The equitable structure of Islamic financial instruments, when paired with viable and solid target investees, is a wholly appealing value proposition,” stated Prince Khaled.
Expressing delight at the bullish reception it had received from Crestmount Fund I, the company chairman said it was looking to expand upon this early success with consistent milestones.
“The investor comfort was secured based on both KBW’s commercial reputability, and by opening with a prime investment portfolio opportunity that boasts an advantageous risk profile,” he noted.
KBW’s chief financial officer, Shimmy Mathew, said: “When deciding on the offering of Crestmount Fund I, the key was to present an attractive opportunity within Sharia-compliant specifications that would allow investors to see a promising return.”
“Crestmount’s initial activity of Dh267 million, A$100 million, through our premier fund has a higher risk-adjusted return as the projects are already under development, thereby ensuring that we’ve presented an agile and secure offering to fund subscribers,” he added.