Kenmore Property Group is to form a strategic alliance with Watan Investments & Securities, a Saudi Arabian investment banking firm.

Kenmore announced today that it had signed a memorandum of understanding with Watan aimed at providing the Scottish company with opportunities to provide property services in Saudi Arabia, as well as a source of fundraising for its existing funds and investments in Europe.

The alliance could lead to the creation of a Saudi Arabian property fund which would invest in the country and other Gulf countries.

Watan would be the fund manager of the vehicle and Kenmore would provide it with property advisory services.

The fund would be launched in 2009, subject to market conditions.

John Kennedy, chairman of Kenmore said: ‘The formation of this Alliance with Watan will provide Kenmore with greater opportunities to not only to expand in Saudi Arabia, a new market, but to use our existing European platform to identify new opportunities for investors who are looking to expand their investment arena outside their home markets.’

Jasper Capital is acting for Kenmore on the alliance.