Arzan Wealth, a Dubai-based advisory firm with focus on real estate and private equity  investments, said it had successfully exited a prime Volkswagen AG property in Germany after netting 8.25 per cent annual returns and actual IRR of 11 per cent for its investors.

This is the fourth exit of an investment by Arzan Wealth this year and fifth in the company's history.

Alongside 90 North Real Estate Partners as property advisor, the Dubai firm played a key role as strategic advisor on the successful sale of the German warehouse used as a spare parts storage and the distribution centre by Volkswagen AG.

The VW Property was acquired in December 2014 with an objective of producing an average annual yield of 8.25 per cent to investors, and an IRR of around 10 per cent over a three-year holding period.

The property was leased entirely to Rudolph Automotive Logistik, a large international logistics company which is contracted by VW to store and distribute spare parts for all of its auto brands.

During the 2.75-year holding period, this investment has delivered an attractive monthly income to clients equal to the promised 8.25 per cent annually, and with this successful exit the actual IRR is around 11 per cent after all taxes and fees.

The high quality of the asset, location and tenant created significant interest for the property, which helped Arzan Wealth’s investors achieve a total return on equity of 30.2 per cent, from this investment.  
Arzan Wealth CEO Muhannad Abulhasan said: "We are pleased to be able to advise our clients on this fourth exit of 2017. Once again we have been able to exceed the return expectations of investors."

"The VW transaction reinforces our primary strategy to preserve and protect the wealth of our clients, while producing an attractive and predictable monthly income," noted Abulhasan.  

"I am particularly proud of the fact that all five exits from our portfolio since we started our business, have achieved results that are above expectations," he noted.

"We always encourage clients to diversify their investments across many opportunities, and a client who would have invested in all five of our exited investments would have achieved an average IRR, net of taxes and fees, of 15.6 per cent every year, which is inclusive of an average monthly yield equal to 8.4 per cent annually," he added.-TradeArabia News Service