Kenmore agrees strategic alliance with Saudi group

Kenmore Property Group is entering into a strategic alliance with Saudi investment banking firm Watan Investments and Securities. The parties have signed a Memorandum of Understanding (MoU) on the alliance that will harness their real estate expertise.

UK-based Kenmore said one of the key aims of the alliance is to create a conduit for raising funds within the Kingdom of Saudi Arabia for investment in Kenmore-managed funds and property investments within the UK and other European countries. The alliance will also enable Kenmore to provide asset and development management services in Saudi Arabia, by building on the firm's existing capability in Dubai.

The parties said they will also explore the possibilities of creating a Saudi-domiciled fund that will invest in the Kingdom and across the Gulf Cooperation Council (GCC). Watan Investment will act as fund manager and custodian and Kenmore will provide real estate advisory services. The fund will be launched in 2009, subject to market conditions.

Kenmore is a co-investing, trading and development property group active in the UK, Europe and Middle East. Based on cost value the firm manages in excess of £2 bn (EUR 2.5 bn) of investments in the UK, France, the Netherlands , Germany, Belgium, Sweden, Norway, Finland and Dubai. Kenmore also has a development pipeline of about £1.5 bn (EUR 1.8 bn).

Jasper Capital is acting as adviser to Kenmore on the Alliance. John Kennedy, chairman of Kenmore Property Group, said: 'Kenmore has expanded its operations across Europe and the Middle East by creating platform businesses which enable it to use its real estate skills to create new investment opportunities. The formation of this alliance with Watan will provide Kenmore with greater opportunities to not only to expand in Saudi Arabia, a new market, but to use our existing European platform to identify new opportunities for investors who are looking to expand their investment arena outside their home markets.'