May 20, 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 managed to generate excess returns in Hill Top UK ("HTUK"), the SPV owning the Siemens PLC Gas Turbine Division HQ ("Siemens") or (the "Property"). This outperformance has resulted in a declaration by the independent Board of HTUK of an extraordinary dividend of 1.5% to shareholders, for the 2013 year. Investors in the Property have received a total cash yield of 9.25% during 2013, consisting of 7.75% p.a. in ordinary monthly yield payments, plus the extraordinary dividend of 1.5% mentioned above.
As the Strategic Advisor on the acquisition and ongoing management of the Property, Arzan Wealth worked hard in conjunction with the Property Advisor, 90 North Real Estate Partners ("90 North"), to craft a custom made deal for a group of elite international investors that were attracted to the acquisition of the Siemens property for the purposes of high income and projected total risk-adjusted returns. The Property was purpose-built for Siemens PLC Gas Turbine Division HQ and has some of the highest environment (BREEAM) ratings for a property of this type. After taking occupancy in late 2012, Siemens PLC invested more than £15mn into fitting out and equipping the Property, which demonstrates their commitment to the asset and the location for the foreseeable future. The property also has expansion land to accommodate Siemens' future requirements.
The acquisition was partially financed by a German bank in a shariah compliant manner. The special dividend was partially a result of the prudent and dynamic management of the finance facility during the past year by Arzan Wealth and 90 North, which lead to cost savings relative to the original projections in late 2012. As such, HTUK received cash distributions from the Property that were beyond its needs for the remainder of the projected holding period and Arzan advised the Board of HTUK to distribute the excess in the form of an extraordinary dividend.
The CEO of Arzan Wealth , Muhannad Abulhasan, has commented "We, at Arzan Wealth are delighted to have played an active advisory role towards the consortium of investors on their acquisition of Siemens PLC Gas Turbine Division HQ in Lincoln, UK, and to the Board of HTUK. This special dividend is an important milestone in delivering, and where possible exceeding, our promises to our trusted clients who seek safe and secure, income producing investments."
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 USD750mn.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, specialising in Shari'ah compliant real estate. Co-Founders are Philip Churchill, Nicholas Judd, and former BBC Dragon James Caan who is Chairman of the business. The Founder Partners combine substantial Shari'ah compliant 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. Following the completion of approximately £250M of acquisitions in the UK over the last two years, 90 North has just opened an office in Chicago, USA and is also acquiring assets in Europe.