Alliance Residential Management will oversee the properties, while one of its affiliates will handle the upgrades.The fund will aim for geographic diversity, but is looking at markets with strong, long-term fundamentals, both parties say.
"This fund will allow our investors to participate in the long-term recovery of the US multifamily market, while earning a healthy current cash return throughout the life of the investment," says Kuwait Finance House assistant general manager Mohammed Al-Omar.
Adds Alliance Holdings LLC chairman Andrew Schor, "The formation of this fund is a strong statement of our mutual belief in the long-term attractiveness of the multifamily sector."
Schor's company oversees 60,000 units across the US.
After a successful $300-million fund was launched in 2001, First Industrial and Kuwait Finance House recently embarked on a $425-million fund that will focus on net-leased industrial properties throughout the US.
Kuwait Finance has more than $8 billion in assets, including real estate investments in the US, Europe and Middle East.
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