Mon, Feb 29, 2016

Business, Banking & Finance
Arzan Wealth advises on $123m acquisition

Arzan Wealth a Dubai-based advisory firm, advised on the acquisition of a North American headquarters campus for Saint-Gobain, following a comprehensive refurbishment by the seller and the signing of a 15-year lease.

The property is located in Malvern, a suburb in the city of Philadelphia in the US.

The 65-acre campus will serve as the North American HQ for Saint-Gobain, the world’s largest construction materials company, which was founded by King Louis XIV in 1665. 

The property comprises of a four-storey, 277,335-square-foot office building and another two-storey, 43,891-sq-ft research and development building. 

The buildings are designed with the open office concept and includes 116 collaborative spaces, a cafeteria along with other food and beverage spaces, a fitness facility and parking for approximately 1,100 vehicles. 

The 35 acres of green space include a pond, a fountain and 1.3 miles of walking trails, and provide sufficient space for the long term expansion needs of Saint-Gobain.

In addition to the high quality of the asset itself, the campus is located in a premiere Philadelphia suburb that hosts many technology, medical and pharmaceutical companies, and which enjoys an average vacancy rate of just over 4 per cent, which is well below the average vacancy rate in the broader Philadelphia market.  

The area is also ranked as the wealthiest part of the state of Pennsylvania.

Arzan Wealth acted as the strategic advisor on the structuring and acquisition of the property, in joint venture with the investment advisor, 90 North Real Estate Partners. 

Muhannad Abulhasan, CEO of Arzan Wealth said: “The Saint-Gobain transaction exemplifies the philosophy of Arzan Wealth, which is based on the pursuit of high quality assets that offer our clients capital protection and a predictable monthly income stream. The combination of the high specifications of the buildings, the location in a strong local market and the long-lease to a tenant with an excellent credit quality, makes this an ideal destination for the investment of legacy wealth that needs to survive the increasingly turbulent economic and geopolitical scene.  

“We believe that investors need to increase their allocation to opportunities that offer safety and monthly income, and that means greater diversification towards mature global markets that offer much lower risks. We are proud of the trust that is being placed in Arzan Wealth by our clients, and we will continue to work tirelessly to preserve their wealth and protect their legacies.”

Arzan Wealth is an investment advisory firm registered at the Dubai International Financial Centre (DIFC), and is regulated by the Dubai Financial Services Authority (DFSA). Arzan Wealth currently advises various professional clients on real estate, private equity and other investments worth a total of just over $1.2 billion. 

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