Arzan Wealth announced the appointment of a mezzanine financing advisor for an investment opportunity in the United States as part of the launch of its new financing strategy. The strategy has been applied to Real Estate Index Linked Securities (\u201cREILS\u201d) linked to the performance of a real estate index, which is a type of mezzanine financing that is structured in accordance with the provisions of Islamic Shari'ah.<\/p>\n
The second REILS investment consists of mezzanine financing for the acquisition of a real estate portfolio consisting of three apartment complexes with a total of 740 units located in New Orleans, Louisiana, USA. The units are currently leased at 93% below market rate. The borrower is a residential property management company since 1962, which provided the capital for the acquisition of this portfolio, as well as a company with experience in the management and development of similar properties in these areas.<\/p>\n
The current REILS deal provides investors with a fixed income of 8% of the mezzanine loan amount, paid quarterly, plus a percentage of the loan amount that increases exponentially during the investment period. Arzan Wealth's clients are expected to recover approximately 87% of the investment amount through quarterly payments only, with an additional payment to be received at the end of the investment period. The expected IRR of the REILS deal ranges from 9.4% to 11.8%, with the latter payment depending on the performance of the residential real estate index, which has increased by 24% over the last six years.<\/p>\n
Arzan Wealth acted as a strategic advisor for the structuring of the transaction and the acquisition of the property, and will continue to do so throughout the life of the property.<\/p>\n
Mr. Mohannad Abulhasan, CEO of Arzan Wealth, commented: \u201dNew Orleans REILS is the second transaction in our new mezzanine financing strategy that is designed to match the risk of rising interest rates. We believe there are attractive opportunities for investors to obtain attractive returns from mezzanine financing with lower risk. What makes the REILS Mezzanine Finance strategy unique is the structure of the deal, which includes a loan repayment schedule that quickly reduces investment risk for our clients, in addition to generating a steady income stream. We at Arzan Wealth look forward to continuing our commitment to our clients in future deals as we continue to find investment opportunities that protect their wealth and provide them with a stable and predictable income.\u201d.<\/p>","protected":false},"excerpt":{"rendered":"
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more<\/a><\/p>","protected":false},"author":10,"featured_media":20450,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_seopress_robots_primary_cat":"0","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[119],"tags":[],"class_list":["post-20449","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-finance"],"acf":{"amlak_post_excerpt":"","amlak_post_excerpt_source":{"label":"Amlak post 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