KUALA LUMPUR: Kuwait Finance House (M) Bhd (KFHM) plans to focus on investment banking and fund management businesses here, with initial investments in the real estate sector, said executive director K. Salman Younis.

The company's US$600mil Baitak Asia Real Estate Fund made its first investment in a major project here, the Pavillion, and was keen to invest in at least four other properties in the region.

The fund, set up in collaboration with Singapore-based Pacific Star Group last June, targeted customers in Asia, he told a media briefing yesterday.

Without elaborating, Younis said this project was expected to yield returns of 10% to 15% annually. Full details on the investment would be disclosed in April, he added.

The Pavillion, a mixed development comprising a shopping mall and apartment blocks, is located at Jalan Bukit Bintang, Kuala Lumpur. It is expected to be completed within the next two years.

Other partnerships being worked out included with Sunway Group to carry out mixed property development, Younis added.

He also said the company would introduce its full range of products and services in three to six months.

KFHM's initial investment is US$1mil and it has interests in other sectors including plantation, motor vehicle, timber and healthcare.

The company, which was one of the three foreign players awarded a banking licence by Bank Negara, planned to use Malaysia as a hub to expand into neighbouring countries, said chairman Jassar Dakheel Al-Jassar.

''We plan to work with existing financial institutions and the Gulf Co-operation Council to leverage their knowledge of the local market and blend that with our expertise,'' he said.

Although KFHM's first branch will be officially launched today, it has been in operations since last August.

As at Dec 31, 2005, KFH had a market capitalisation of US$8.9bil.

Source : The Star 17/2/2006