{"id":1086,"date":"2024-04-03T06:59:17","date_gmt":"2024-04-03T06:59:17","guid":{"rendered":"https:\/\/arzan.com.kw\/?p=1086"},"modified":"2024-06-23T12:31:17","modified_gmt":"2024-06-23T12:31:17","slug":"arzan-wealth-achieves-successful-exit-of-a-us-mezzanine-lending-transaction-3","status":"publish","type":"post","link":"https:\/\/arzan.com.kw\/en\/arzan-wealth-achieves-successful-exit-of-a-us-mezzanine-lending-transaction-3\/","title":{"rendered":"ARZAN WEALTH ACHIEVES SUCCESSFUL EXIT OF A US MEZZANINE LENDING TRANSACTION"},"content":{"rendered":"

June 01st<\/sup>\u00a0, 2020 \u2013 Arzan Wealth (DIFC) Limited (\u2018Arzan Wealth\u2019), a Dubai-based advisory firm regulated by the Dubai Financial Services Authority, is pleased to announce that it has advised its client on a successful exit of a mezzanine lending transaction in New Orleans, in the United States, achieving strong returns for investors.<\/p>\n

This investment is part of Arzan Wealth\u2019s Debt Platform, which focuses on identifying investments into real estate debt opportunities.\u00a0 The New Orleans transaction utilizes the innovative Real Estate Index Linked Securities (\u201cREILS\u201d) structure, which is an amortizing mezzanine loan, and was structured in a Sharia-compliant manner. The New Orleans REILS investment was made in April 2018 to finance a portfolio comprising three multifamily properties consisting of 740 apartments located in New Orleans, Louisiana, USA.<\/p>\n

 <\/p>\n

The New Orleans REILS transaction was structured with a net 8% coupon, payable quarterly, and with an escalating quarterly amortization schedule as well as an additional payment at the end of the instrument\u2019s term that was designed to generate a total IRR of between 9.4% and 11.8%. Arzan Wealth acted as the Sub Strategic Advisor on the exit of this investment at a net IRR of 11.9% per annum.<\/p>\n

 <\/p>\n

Muhannad Abulhasan, CEO of Arzan Wealth said:<\/p>\n

\u201cThe Arzan Wealth team is very proud to be able to advise on the exit of the New Orleans REILS deal, and at the highest possible IRR as designed by us when we advised on entering the deal two years ago.\u00a0 We are particularly pleased to be able to deliver these very positive results to our loyal investors in the midst of the global economic catastrophe that is unfolding as a result of the COVID-19 public health crisis.<\/p>\n

 <\/p>\n

An IRR of 11.9% from a safe and income-producing real estate debt investment is consistent with Arzan Wealth\u2019s objective of offering clients superior risk-adjusted opportunities in mature real estate markets.\u00a0 The stable and regular cash flow payments from our REILS transactions have proven to be an important stabilizing element in the portfolios of our clients, especially during turbulent economic times like the one we find ourselves in today.<\/p>\n

 <\/p>\n

Arzan Wealth will continue to focus on advising on new REILS deals, as well as other real estate investment opportunities that create a secure and regular income stream, with as low a risk profile as possible.\u00a0 While economic turbulence can create uncertainty, Arzan Wealth will always be a stable and reliable partner for our clients, during good times and bad.\u00a0 I am grateful to our loyal clients for their continued trust in Arzan Wealth.\u201d<\/p>\n

 <\/p>\n

 <\/p>\n

ENDS<\/p>\n

Notes to Editors<\/strong><\/p>\n

About Arzan Wealth (DIFC) Limited<\/strong><\/p>\n

Arzan Wealth is an investment advisory firm registered at the Dubai International Financial Centre (DIFC), and is regulated by the Dubai Financial Services Authority (DFSA). Arzan Wealth currently advises various professional clients on real estate, private equity and other investments with a total value of assets advised around US$ 1.89 Billion.\u00a0 Arzan Wealth focuses on arranging yielding investments in major global markets, as well as bespoke investments that meet the requirements of specific clients.<\/p>\n

Past or projected performance is not necessarily a reliable indicator of future results.<\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

For further information contact:<\/strong><\/p>\n

Ahmad AlSabbrei<\/strong><\/p>\n

Head of Investment Operations<\/p>\n

a.alsabbrei@arzanwealth.com<\/a><\/p>\n

+965 9988 8624<\/p>","protected":false},"excerpt":{"rendered":"

June 01st\u00a0, 2020 \u2013 Arzan Wealth (DIFC) Limited (\u2018Arzan Wealth\u2019), a Dubai-based advisory firm regulated by the Dubai Financial Services Authority, is pleased to announce that it has advised its client on a successful exit of a mezzanine lending transaction in New Orleans, in the United States, achieving strong returns for investors. This investment is […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1086","post","type-post","status-publish","format-standard","hentry","category-normal"],"acf":[],"_links":{"self":[{"href":"https:\/\/arzan.com.kw\/en\/wp-json\/wp\/v2\/posts\/1086","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/arzan.com.kw\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/arzan.com.kw\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/arzan.com.kw\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/arzan.com.kw\/en\/wp-json\/wp\/v2\/comments?post=1086"}],"version-history":[{"count":3,"href":"https:\/\/arzan.com.kw\/en\/wp-json\/wp\/v2\/posts\/1086\/revisions"}],"predecessor-version":[{"id":1331,"href":"https:\/\/arzan.com.kw\/en\/wp-json\/wp\/v2\/posts\/1086\/revisions\/1331"}],"wp:attachment":[{"href":"https:\/\/arzan.com.kw\/en\/wp-json\/wp\/v2\/media?parent=1086"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/arzan.com.kw\/en\/wp-json\/wp\/v2\/categories?post=1086"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/arzan.com.kw\/en\/wp-json\/wp\/v2\/tags?post=1086"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}