Since its inception, Kuwait Financial Centre (Markaz) has embraced a strategy of acquiring, developing and managing institutional-quality properties in prime locations.
Central to the firm's approach is the Markaz Real Estate Fund (MREF), an open-ended, Sharia-compliant fund. With $248 million in assets, the fund focuses on income-generating properties, primarily within Kuwait, targeting the most promising segments of the local real estate market. Operating with zero leverage, the fund has achieved an internal rate of return of 7.6% in the review period, while consistently distributing approximately 5% in monthly cash dividends.
Tenant retention strategies have been meticulously crafted to minimize vacancy rates across the firm’s properties. Recognizing that high vacancy levels can adversely impact maintenance and rental efforts, the firm has employed a proactive approach to reduce tenant turnover. This includes conducting comprehensive exit interviews to understand the underlying reasons for departures and implementing measures to strengthen tenant attachment. Initiatives such as hosting seasonal events, distributing gifts on occasions like Mother's Day, and regularly surveying tenants for feedback have collectively contributed to tenant satisfaction, and thus high occupancy rates.