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.