Dubai, United Arab Emirates — 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 on a successful mezzanine lending exit in the United States achieving strong returns for investors.
This deal was completed in Jan 2022 as part of Arzan Wealth Debt platform utilized Real Estate Index Linked Securities (“REILS”) instrument, which was designed as a 4-year amortizing mezzanine loan to a portfolio of multi-family properties, consisting of 1,339 rental residential units in the states of New York, Nebraska, Missouri and New Hampshire, USA.
Arzan Wealth advised on the exit of this investment, generating a higher return than the maximum contractual IRR and EM in a short holding period of 6 months. The early exit from this investment resulted from the borrower unexpectedly selling their entire portfolio, which allowed our investors to achieve extraordinary returns from a very short investment horizon.
Muhannad Abulhasan, CEO of Arzan Wealth said:
“Another successful exit from our real estate debt platform. The strong returns generated from this REILS transaction are a testament to the capabilities of our team and adds to our track record of providing strong returns to our investors. The stable and regular cash flow payments from our REILS transactions have proven to be an important stabilizing element in the portfolios of our clients.
Arzan Wealth continues to prioritize opportunities that preserve and protect the wealth of our clients, while providing them with a very predictable and regular income stream. An investor that invested in all the Arzan Wealth advised transactions that have already been exited would have achieved an average cash-on-cash yield of 8.4% per annum, and a net IRR of 14.4%.”
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