Yielding Assets Platform
We serve our clients with a medium-to-long term view to value creation. We look for income-producing products that offer high security of principal and a predictable and secure regular income stream with the right level of diversification. In early 2012, we launched the Yielding Assets Platform and since then, we have identified and advised on real estate assets that offer an attractive monthly income stream and security of principal in the UK, US and Europe.
The Yielding Assets Platform is a core and ongoing business line that transacts on an asset-by-asset basis, in major global markets that provide legal and tax transparency and protections. It aims to deliver:
A monthly income equating to an annual yield of 7.5% - 8.5% net of taxes and fees
An IRR of 11%-13%, net of taxes and fees
A conservative loan-to-value target of 50% - 65%
A projected holding period of 3 to 5 years
An on-going advisory service on the property
A pro-active management of the property for value creation
An alignment of interest wherein AFG and senior employees hold a minimum equity investment throughout the investment period
The following 19 transactions were arranged and advised on by Arzan Wealth, from 2012 to date:
Purchase of warehouse let to
Siemens in Lincoln, UK in November 2012.
Acquisition of distribution hub for
L’Oreal in Nottingham, UK in Dec 2012; sold in June 2014 at a Net IRR of 16.6%.
The Green – a brand new
student housing facility within the University of Bradford, UK in June 2013.
Crossley Retail Park – Kidderminster, UK in November 2013.
VW Car Parts Warehouse in North Hessen, Germany in December 2014 (signed in May 2014).
Purchase of Class A Headquarter office Building of
Continental Automotive Systems Inc. in Deer Park, Chicago, USA in August 2014.
Purchase of modern warehouse and offices for
Onninen AS, Oslo, Norway in November 2014.
Purchase of global headquarters building of
Lenovo’s Enterprise Server Division at Research Triangle Park, in Raleigh North Carolina, USA in February 2015.
Purchase of Grade A Single Tenant Portfolio let to 6 single-tenant net leased buildings across
6 States in the USA in 26 June 2017.
Purchase of Class A office building fully let to
the Netherlands Organization for Scientific Research, (NWO) at The Hague,
The Netherlands in 31st October 2017.
The Real Estate Debt Platform
Arzan Wealth entered the real estate debt space in 2017, as part of its efforts to respond to changing to market conditions and to meet investors' needs for a low risk profile and predictable cash flow stream. The Real Estate Debt strategy can enhance portfolio performance by adding senior and mezzanine debt investments to a real estate equity portfolio. In December 2017, Arzan Wealth developed and executed the first amortizing mezzanine loan in the US, in a unique certificate structure called REILS. Arzan Wealth has the exclusive rights for the REILS structure in the Middle East, while the exclusivity extends globally if the REILS is offered in a Sharia compliant ma nner. The REILS structure is an example of how Arzan Wealth is continually trying to innovate and offer clients superior risk adjusted returns, with a prime focus on safety and regular income. In addition to the REILS, we continue to identify and advise on other senior and mezzanine opportunities in the US and believe that real estate debt should play a role in any portfolio of investments focused on an attractive income stream and enhanced risk-adjusted returns.
The below transactions should be shifted from Yielding asset to the real estate platform:
Mezzanine Opportunity - Property Development Certificate to finance the acquisition of a Multifamily Portfolio in Jackson, Mississippi, USA. In 20th December 2017.
Mezzanine Opportunity –Real Estate Index Linked Securities (“REILS”) to finance the acquisition of a Multifamily Portfolio in New Orleans, Louisiana, USA. In 13th April 2018.
Senior secured loan to Bluejack National Project, owner of a premier luxury-lifestyle community in
Houston, USA. in 17th December 2018.
Opportunistic Assets Platform
Arzan Wealth will occasionally arrange and advise on opportunistic deals that offer the potential for significant capital appreciation, for those clients who prioritize capital growth over safety and a regular income stream. Despite the larger risk appetite of such clients, Arzan Wealth will always endeavor to deliver a superior risk-adjusted return, through careful market selection, careful strategy design and diligent ongoing advice.
Portfolio Advisory Services
Arzan advises clients on their proprietary book investments. We are constantly working on enhancing value and cash flow generation from the prop books of our clients such as AFG, while also reducing the risk profile of the overall portfolio.
Bespoke Client Assignments
In response to client requests, Arzan Wealth is able to tailor-make solutions or advice to the specific needs of a particular client, or a potential tranche of similar clients. Examples of such assignments, either executed, ongoing or have been considered are: Private equity opportunities within defensive sectors such as healthcare and education; Venture capital into MENA-focused technology companies; Creation of a residential search and management business for HNWI's looking to global markets; Development and refurbishment of real estate in major, mature markets; Real estate based businesses in Middle East Region and Africa; Sourcing and acquisition of specific core property assets for HNW families, for legacy ownership