UAE - Arzan Wealth, a Dubai-based consulting firm governed by the Dubai Financial Services Authority, has announced that it had provided advice on a mezzanine financing opportunity for a healthcare facility located in Houston, Texas. The structure has been created to comply with Shariah law.
This investment is designed as a mezzanine loan to a Class A healthcare facility located in Houston, US.
Built in 1978 and fully renovated in 2022, the property is a 167,445 sqft urban hospital and is 100% leased to two premier healthcare tenants with a weighted average remaining lease term of 12.7 years.
The term of this mezzanine loan is four years with two one-year extension options. Distributions would be made to investors on a quarterly basis at attractive risk adjusted returns over the life of the loan.
Arzan Wealth advised on the structuring of the mezzanine instrument and the due diligence of the underlying collateral assets and will continue its advisory role during the holding period of this investment.
CEO Muhannad Abulhasan said: "Arzan Wealth has a clear vision when it comes to enhancing our deal sourcing capabilities in order to bring to our clients opportunities with a favorable risk-reward dynamic, and we see a significant opportunity to grow our mezzanine transaction volume during the current high interest rate environment."
"One feature of our mezzanine structure that becomes more crucial in inflationary times is the amortization element built into our transactions, which enables our clients to recoup their initial capital more rapidly, and more effectively re-deploy it into new investment possibilities," noted Abulhasan.
"Arzan Wealth will remain devoted to assisting its clientele to diversify their foreign portfolios in an intelligent and careful way by offering them high-quality consulting services," he added.
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