United Arab Emirates – Arzan Wealth, a Dubai-based consultancy firm managed by the Dubai Financial Services Authority, announces that it has advised on a mezzanine financing opportunity for a healthcare facility located in Houston, Texas. The structure was created in compliance with Sharia law.
The investment is intended as a mezzanine loan for a Grade A medical institution located in Houston, USA.
Built in 1978 and fully renovated in 2022, the property is a 167,445 sq. ft. city hospital and is 100% leased to two primary healthcare tenants with a weighted average remaining lease term of 12.7 years.
The mezzanine loan has a term of four years with two one-year extension options. Distributions will be made quarterly to investors over the life of the loan at an attractive risk-adjusted rate of return.
Arzan Wealth advised on the structure of the mezzanine vehicle and the due diligence of the underlying collateral assets and will continue to act in an advisory role while the investment is held.
Chief Executive Officer Muhannad Abulhasan said: “Arzan Wealth has a clear vision in enhancing our transaction sourcing capabilities in order to deliver opportunities for our clients with favorable risk-reward dynamics and we see significant opportunities to increase mezzanine transaction volume during the current high interest rate environment.”
Abulhasan noted: “One feature of our mezzanine structure that has become even more important in times of inflation is the amortization element built into our transactions, which allows our clients to recover initial capital faster and redeploy it more efficiently into new investment possibilities.” .
“Arzan Wealth remains committed to helping its clients diversify their overseas investment portfolios in a sensible and prudent manner by providing them with high-quality advisory services,” he added.
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