Arzan Wealth (DIFC) Limited, 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 the German warehouse used as a spare parts storage and the distribution center by Volkswagen AG, Germany (“VW Property”).
The VW Property was acquired in December 2014 with an objective of producing an average annual yield of 8.25% to investors, and an IRR of around 10% over a three-year holding period. The Property was leased entirely to Rudolph Automotive Logistik GmbH (“Rudolph”), a large international logistics company which is contracted by VW to store and distribute spare parts for all of VW’s brands.
During the 2.75 year holding period, this investment has delivered an attractive monthly income to clients equal to the promised 8.25% per annum, and with this successful exit, the actual IRR is around 11% after all taxes and fees. The high quality of the asset, location, and tenant created significant interest in the property, which helped Arzan Wealth’s investors achieve a Total Return on Equity of 30.2%, from this investment.
Arzan Wealth acted as Strategic Advisor on the sale, alongside 90 North Real Estate Partners as Property Advisor. This is the fourth exit of an investment by Arzan Wealth during 2017, and the fifth in its history.
Muhannad Abulhasan, CEO of Arzan Wealth said:
“We are pleased to be able to advise our clients on this fourth exit of 2017. Once again we have been able to exceed the return expectations of investors. The VW transaction reinforces our primary strategy to preserve and protect the wealth of our clients while producing an attractive and predictable monthly income.
I am particularly proud of the fact that all five exits from our portfolio since we started our business, have achieved results that are above expectations. We always encourage clients to diversify their investments across many opportunities, and a client who would have invested in all five of our exited investments would have achieved an average IRR, net of taxes and fees, of 15.6% per annum, which is inclusive of an average monthly yield equal to 8.4% per annum.”