Arzan Wealth (DIFC) Limited (Arzan Wealth), a Dubai-based advisory firm regulated by the Dubai Financial Services Authority, has successfully advised its clients on the sale of two properties (the Properties) from the single tenant portfolio in USA.
The single tenant portfolio consists of six single-tenant net-leased buildings with a total of 760,533 square feet, located in six states in the US and cover several sectors—it includes one healthcare, three industrial, and two office assets, with tenants that enjoy strong credit ratings and reputations in their markets. The portfolio was acquired in June 2017.
One of the sold buildings is a hospital built in 1998, located in Seminole, Oklahoma and leased to Alliance Health (Integris) that serves more than 30,000 residents in Seminole County and the surrounding area. The other exited asset is a class A office building built in 1986, located in Trenton, Georgia and leased to Accellent (Lake Region Medical). Accellent manufactures polymer components as well as assembles medical devices that are primarily polymer based.
The Portfolio was acquired in June 2017 as part of Arzan Wealth’s yielding asset platform with an objective of producing an average annual yield of 8.50 per cent to investors, and an IRR of around 10 per cent over a three-year holding period. Arzan Wealth’s strategy was to identify opportunities to break up the portfolio by selling off some of the assets, while enhancing value in the others. Both assets were successfully sold at a price that has created a net weighted-average IRR of around 13.2 per cent.
Arzan Wealth acted as the Strategic Advisor on the structuring and sale of the Properties and will continue in this role during the remaining holding period of the remaining assets.
“These two sales take Arzan Wealth’s track record to eight exits on behalf of clients, and I am very pleased that we have been able to greatly exceed the return expectations of investors on selling the Accellent and Integris buildings. This transaction exemplifies the prudent approach of Arzan Wealth, in terms of market selection and asset quality. I am also pleased to announce that we have also accepted an attractive offer on a third asset in this portfolio. The closing of the sale is expected in October 2018 and would again exceed the IRR expectations projected at the time of acquisition. We are proud of the trust that is being placed in Arzan Wealth by our clients, and we look forward to delivering on our promises to them in future. The primary objective of Arzan Wealth is to preserve and protect the wealth of our clients, while producing an attractive and predictable monthly income,” said Muhannad Abulhasan, CEO of Arzan Wealth.