Arzan Wealth (DIFC) Limited (‘Arzan Wealth’), a Dubai-based advisory firm regulated by the Dubai Financial Services Authority, is pleased to announce that it has successfully advised its clients on the sale of the Siemens gas turbine unit headquarters at Teal Park, in Lincoln, UK.
The asset was acquired in November 2012 with an objective of producing an average annual yield of 7.75% to investors, and an IRR of around 11% over a three-year holding period. The property was purpose-built for Siemens PLC Gas Turbine Division and has some of the highest environment (BREEAM) ratings for a property of this type.
During the 4.5 year holding period of this investment, we were able to advise on several opportunities to create value, which has allowed us to exceed our promised returns to clients on every measure. The investment has delivered an average annual yield of 8.1% and an IRR of around 12%, which are both higher than original projections. Total Return on Equity (ROE) was 58%, significantly higher than initial projections of 33%.
The asset was sold to Siemens, who have decided to invest further capital into Teal Park and to make the site a major global location for their gas turbine business. Unconditional contracts have been exchanged, and the sale is expected to complete in early July. Arzan Wealth acted as Strategic Advisor on the sale, alongside 90 North Real Estate Partners as Property Advisor.
Muhannad Abulhasan, CEO of Arzan Wealth said:
“I would like to thank our valued clients who put their trust in Arzan Wealth. We are pleased to fulfill our promises to our clients and exceed their expectations by delivering returns that are significantly higher than projected. This is our second exit in the UK, and it demonstrates our continued focus on results that combine low risks with above-average returns. We look forward to delivering more good news in future.”