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 successfully advised its clients on the sale of a third property (“The Property”) from the Single Tenant Portfolio in USA.  

The Single Tenant Portfolio was acquired in June 2017, consisting of 6 single-tenant net-leased buildings with a total of 760,533 sq ft, located in 6 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 sold property is an industrial building located in Aiken, South Carolina. Built in 2014, the 175,000 sf building was constructed to the highest institutional standards. Owens Corning occupies 100% of the space on a lease term set to expire on January 31, 2029.  The facility provides Owens Corning with a Class A distribution center with the required supporting office space.

The Portfolio was acquired as part of Arzan Wealth’s yielding asset 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 Owens Corning 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. This asset was successfully sold at a price that has created a net IRR of around 12.7%, which is above the target IRR of 10% for the whole portfolio.

Arzan Wealth acted as the 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.

Muhannad Abulhasan, CEO of Arzan Wealth said: 

“We are pleased that once again, we have been able to exceed the return expectations of investors.  This transaction reinforces our primary strategy to preserve and protect the wealth of our clients, while producing an attractive and predictable monthly income. Our track record, with a total of nine asset sales, proves that clients who chose to diversify with us by investing in all deals have benefited from this conservative approach, and will have achieved an average IRR, net of taxes and fees, of ~ 15% per annum, which is inclusive of an average monthly yield equal to 8.8% per annum.”

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