September 27, 2014 - Arzan Wealth (DIFC) Limited (‘Arzan Wealth’), a Dubai-based advisory firm regulated by the Dubai Financial Services Authority, is pleased to announce that it has advised a consortium of investors on the acquisition of a Class “A” headquarters office building under a sale & lease back transaction with Continental Automotive Systems, Inc. (“Continental”) in Deer Park, Chicago, USA (“Property”).
Located in a suburban area of Chicago, Illinois, the Property was constructed in 2002 and serves as Continental’s USA headquarters for their automotive interiors division, with various office departments supplemented by research, development and testing laboratories. The Property comprises of 351,425ft2 of built up accommodation over basement and seven floors. This includes a 300 person auditorium, a 500 person cafeteria and a 1,209 space car park in a high quality setting.
The Property is 60% occupied by Continental under a new 13-year lease agreement with 2% annual rent increases, while the remaining 40% is available for lease, thus providing an immediate opportunity to create value through a new leasing strategy. Furthermore, the property includes land wherein up to 528,575ft2 of space can be built if required.
Arzan Wealth acted as the Strategic Advisor on the structuring and acquisition of the Property, in joint venture with our partner and the Property Advisor, 90 North Real Estate Partners (“90 North”).,
the strategic partner of Arzan Wealth. Along with Arzan Financial Group, various investors from the region co-invested in the deal which included one of our prominent and strategic investor, Al Tijaria (The Commercial Real Estate Company KPSC).
Muhannad Abulhasan, CEO of Arzan Wealth said:
“Arzan Wealth continues to expand geographically, building on our track record in the UK and Germany. This first US acquisition advisory role positions Arzan Wealth as a primary advisor to our valued clients on high quality deals with steady income streams. The Continental asset is expected to provide a secure income stream, equating to an average of 7.75% per annum, payable monthly, from only the 60% occupied area, hence providing the investors in the deal with a clear value add opportunity that can enhance their total returns.”
Notes to Editors
Arzan Wealth (DIFC) Limited
Arzan Wealth is an investment advisory firm registered at the Dubai International Financial Center (DIFC), and is regulated by the Dubai Financial Services Authority (DFSA). Arzan Wealth currently advises various clients on real estate, private equity and other investments worth a total of approximately USD850mn. Arzan Wealth focuses on arranging yielding investments in major global markets, as well as bespoke investments that meet the requirements of specific clients.
90 North Real Estate Partners LLP
90 North is an independent investment advisory firm based in London, specialising in ethical and Shari’ah compliant real estate investment. Co-Founder Partners are Philip Churchill and Nicholas Judd, with former BBC Dragons’ Den James Caan as Chairman of the business. The Founder Partners combine substantial property and other transactional experience, excellent track records with an absolute focus on property fundamentals to deliver superior risk adjusted returns and protect and enhance wealth.
In the past 2 years, 90 North has transacted on approximately £425,000,000 ($680,000,000) of real estate transactions in the UK, US and Europe, working in close partnership with Gulf based institutions.
90 North opened its US office in Chicago in June 2014, headed by Dan Cooper.