Arzan Wealth plays key role in sale of prime US office property
DUBAI, May 5, 2021
Arzan Wealth, an advisory firm regulated by the Dubai Financial Services Authority, said it has played a key role in the sale of a fifth property from the Single Tenant Portfolio - Magna.
A 180,000 sq ft build‐to‐suit office building at Oakland County in Michigan, US, Magna has consolidated all activities into a single facility to house its global headquarters. The property houses several business units including all executive and management staff, engineering, sales and marketing, and R&D.
The Single Tenant Portfolio, comprising six single-tenant net-leased buildings with a total 760,533 sq ft area, was acquired in June 2017.
It is spread over six states in the US, and sectorally diversified with healthcare, industrial, and office assets, and with tenants that enjoy strong credit ratings and reputations in their markets.
The portfolio was acquired as part of Arzan Wealth’s yielding asset advisory platform with an objective of producing an average annual yield of 8.50% to investors, and an IRR of around 10% over a three-year holding period.
The sale of the Magna asset is consistent with Arzan Wealth’s original strategy of identifying opportunities to break up the portfolio by selling off some of the assets, while enhancing value in the others, said its top official.
"With this asset, we have now advised on exits of five assets from this portfolio and thirteen overall, reflecting our continued approach to not only identify and advise on properties that provide regular income but also profitable exits to investors," remarked its CEO Muhannad Abulhasan.
Arzan Wealth acted as the sub 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.
"We are pleased that we have been able to meet the return expectations of investors during these unprecedented times from the Single Tenant Portfolio, which included a diversified set of property types and locations across the US," noted Abulhasan.
"This successful exit exemplifies the prudent approach of Arzan Wealth in terms of opportunity selection at purchase, active asset advisory during the holding period and timely exits. Our primary strategy remains to preserve and protect the wealth of investors, while producing an attractive and predictable monthly income," he added.
