Arzan Wealth nets solid returns on successful US property exit in Louisiana

Arzan Wealth said this investment was part of its Debt Platform, which focuses on identifying investments into real estate debt opportunities.

The New Orleans transaction utilises the innovative Real Estate Index Linked Securities (REILS) structure, which is an amortising mezzanine loan, and was structured in a sharia-compliant manner.

The US investment was made in April 2018 to finance a portfolio comprising three multifamily properties featuring 740 apartments located in New Orleans at Louisiana.

The transaction was structured with a net 8% coupon, payable quarterly, and with an escalating quarterly amortization schedule as well as an additional payment at the end of the instrument’s term that was designed to generate a total IRR of between 9.4% and 11.8%.

Arzan Wealth acted as the sub strategic advisor on the exit of this investment at a net IRR of 11.9% per annum.

CEO Muhannad Abulhasan said: "The Arzan Wealth team is very proud to be able to advise on the exit of the New Orleans REILS deal, and at the highest possible IRR as designed by us when we advised on entering the deal two years ago."

"We are particularly pleased to be able to deliver these very positive results to our loyal investors in the midst of the global economic catastrophe that is unfolding as a result of the COVID-19 public health crisis," he added.

Disclaimer: The content of this article is syndicated or provided to this website from an external third party provider. We are not responsible for, and do not control, such external websites, entities, applications or media publishers. The body of the text is provided on an “as is” and “as available” basis and has not been edited in any way. Neither we nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this article. Read our full disclaimer policy here.