July 7, 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 sale of a UK warehouse leased to L’Oreal (UK) Ltd (“L’Oreal”), the global cosmetics company (the “Property”). The Property was sold to a major UK investment fund on June 26, 2014.
The Property was constructed for L’Oreal in 2006 within the Sherwood Park development near Nottingham, and provides 112,806sqft warehouse space, 13,254sqft offices and  parking spaces and extensive service yard area on 6.1acre site. In December 2012, Arzan Wealth and 90 North Real Estate Partners (“90 North”), as joint advisors, worked with the consortium of investors on the acquisition of the Property for the purpose of generating a monthly income equal to 8.0% per annum, and at that time it was projected that upon exit the IRR would be 12.4%, combining the monthly income and capital gains.
However, based on the significant interest of potential buyers of the Property, Arzan Wealth and 90 North were able to recommend the sale of the asset at a price of GBP 10,960,000 to a highly reputable UK fund, which has resulted in an IRR for investors of 16.6%, net of all taxes, fees and expenses.
Muhannad Abulhasan, CEO of Arzan Wealth said:
“I would like to congratulate our valued clients who put their trust in Arzan Wealth and invested into L’Oreal’s UK distribution hub. It is always our duty to fulfill our promises to our clients, but it is especially satisfying when we exceed investor expectations by delivering returns that are significantly higher than projected. This exit has demonstrated the quality of our asset selection and the ability of Arzan Wealth to deliver above-average risk adjusted return for investors.We hope that we will always remain worthy of the trust of our clients, and look forward to delivering more good news in future.”
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 USD800mn. 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 £277,500,000 of real estate transactions in the UK and Europe, working in close partnership with Gulf based institutions.90 North opened it US office in Chicago in June 2014.