Islamic lender Kuwait Finance House (KFH) has inked a US$450.0 million (US$1=RM3.49) JV pact with UDR Inc., a leading US-based real estate investment company.

The joint venture (JV) will seek to acquire high income residential real estate in major cities in the United States with total investments of up to $450 million.

However, the JV will target "A" class assets with a minimum of $20 million that are less than seven years old. The move is the latest in a string of recent investments from Gulf countries into Western real estate.

Under the deal, KFH's will contribute 70 percent, while UDR's participation will be remaining 30 percent.