GIH sets up real estate advisory firm for the US

Kuwait-based investment company, Gulf Investment House, has set up Innovest Capital, Inc., a US-based firm that will serve as GIH’s real estate advisory arm for US real estate activities.

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By  Eudore Chand Published  February 19, 2005

Kuwait-based investment company, Gulf Investment House, has set up Innovest Capital, Inc., a US-based firm that will serve as GIH’s real estate advisory arm for US real estate activities. “Our goal is to develop a wide range of products catering to all our clients’ broad financial objectives. The opening of Innovest is in line with GIH’s long-term plan to continuously play an active and extensive role in the US,” said Waleed A. Al Rowaih, GIH deputy chairman and managing director. GIH also announced the signing of three contracts for a total of US $31.7 million; these are for the construction of three medical office buildings at the existing campuses of three hospitals in the states of New York, Washington and Michigan. The projects are expected to be the first of a series of similar transactions to be concluded by GIH in the next 12 months for an expected total cost of about $120 million. The majority of the MOBs are expected to be located on campuses of sponsoring hospitals with 60-70% of the rentable space pre-leased (at the time of commencement of construction) to the sponsoring hospitals and physicians on five to 10 years leases. GIH plans to package these MOB’s into an investment fund. “Success in real estate is a two-fold process involving strong deal sourcing capabilities and a persistent asset management strategy. Innovest will allow us to get a full grasp of the entire process. By utilising our local presence in the US, we can now assertively source and execute deals in an efficient manner. With a US platform in place, our asset management capabilities can only improve with our ability to consistently monitor our assets,” said Bader A. Al Ali, GIH deputy CEO and head of investment funds. Al Ali added that the health care real estate is benefiting from a growing healthcare industry. US healthcare spending totalled $1.54 trillion in 2002 and is expected to more than double to $3.1 trillion by 2012, according to the Centre for Medicare & Medicaid Services. The number of Americans aged 65 and over is projected to double to 71 million by 2030, nearly 20% of the total population.

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