Tuesday 11, July 2017 by Georgina Enzer

Arzan Wealth exceeds expectations with sale of warehouse in Oslo, Norway

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 the successful sale of a prime logistics warehouse in Oslo, Norway leased to Onninen AS (“The Property”).

The property was acquired in November 2014 and has provided investors with an attractive average yield of 9.4 per cent per annum that was paid on a monthly basis. While the initial projections at the time of acquisition were for a target IRR of 11.4 per cent, combining the monthly income and moderate capital gains, the sale has resulted in an actual IRR of just over 15 per cent after all taxes and fees. The high quality of the asset, location and tenant created significant interest for the asset, thus achieving a very attractive exit price for investors, leading to a total Return on Equity of 39 per cent, which was well above the 33 per cent initially projected.

The asset was sold to a local Norwegian fund, after a very competitive sale process that attracted significant interest from institutional investors. Arzan Wealth acted as Strategic Advisor on the sale, alongside 90 North Real Estate Partners as Property Advisor

“This is Arzan Wealth’s third exit of 2017 on behalf of clients, and I am very pleased that once again we have been able to exceed the return expectations of investors. This transaction exemplifies the prudent approach of Arzan Wealth, in terms of market selection, asset quality and a conservative leverage philosophy. The ability to find assets that pay a high yet secure monthly income, and that can also protect the initial capital invested, is an important part of the reputation of Arzan Wealth. We look forward to continuing on the path of recycling capital back to investors from our early transactions, and advising them on the optimal opportunities to put that capital to work again, in a careful manner that protects and preserves their wealth, while generating an attractive and predictable monthly income,” Muhannad Abulhasan, CEO of Arzan Wealth said.

Features & Analyses