Monday, Highlands Ranch, Colorado - based equity real estate investment trust UDR, Inc. (UDR) said it signed a joint venture with Kuwait's major Islamic Bank Kuwait Finance House or KFH to invest US$450 million in multifamily properties in key, high barrier markets in the US. The partners would contribute equity of US$180 million with a 70% contribution by KFH and 30% by UDR for a holding period of up to seven years.
UDR said that the venture is to target class "A" assets with a minimum value of US$20 million that are less than seven years old. The venture intends to be fully invested over a two year investment period. UDR would receive asset and property management fees from the venture and have the potential to earn promotes on investments, said the company.
Commenting on the agreement, Tom Toomey, president and chief executive officer, said, "…This venture will allow UDR to continue to expand its portfolio into high barrier to entry markets with judicious use of the Company's capital and enhanced return potential through fees and promotes."
The signing ceremony was held in London, UK on last Friday. Citigroup Global Markets, Inc. has assisted in arranging the joint venture.
UDR closed Friday's regular trading at $13.22 on the NYSE.
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