Arzan Wealth, a Dubai-based advisory firm managed by the Dubai Financial Services Authority, announced that it has advised a Houston, Texas-based healthcare facility on a mezzanine financing opportunity. 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 deal sourcing capabilities to bring opportunities to our clients with favorable risk-reward dynamics and we see significant opportunities to increase mezzanine deal volume during the current high interest rate environment.”
“One feature of our mezzanine that has become even more important in times of inflation is the amortization element built into our transactions, which allows our clients to recover their initial capital more quickly and redeploy it to new investment possibilities,” Abulhasan pointed out.
“Arzan Wealth will remain 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.trade arab news agency