Yielding Assets Platform
We serve our clients with a medium-to-long term view to value creation. We look for income-producing products that offer high security of principal and a predictable and secure regular income stream with the right level of diversification. In early 2012, we launched the Yielding Assets Platform and since then, we have identified and advised on multiple real estate assets that offer an attractive monthly income stream and security of principal in the UK, US and Europe.
The Yielding Assets Platform is a core and ongoing business line that transacts on an asset-by-asset basis, in major global markets that provide legal and tax transparency and protections. It aims to deliver:
- A monthly income equating to an annual yield of 7.5% - 8.5% net of fees and taxes
- An IRR of 11%-13%, net of taxes and fees
- A conservative loan-to-value target of 50% - 65%
- A projected holding period of 3 to 5 years
- An on-going advisory service on the property
- A pro-active management of the property for value creation
- An alignment of interest wherein AFG and senior employees hold a minimum equity investment throughout the investment period
Arzan Wealth partners with local, on-the-ground expertise in key markets to provide asset-level advisory services that complement the strategic advisory services that Arzan Wealth provides to its clients.
List of Transactions
Elegance Assisted Living / Memory Care Portfolio Dublin & Novato, California, USA
Elegance Portfolio is newly built state-of-the-art Assisted Living / Memory Care communities in an infill location in the San Francisco East Bay and Marin County, CA areas, with high barriers to entry. The portfolio consists of two assets (Elegance at Dublin and Elegance Hamilton Hill) and offers 160 Class A units totaling 137,859 rentable square feet. The construction was completed on both the assets, which are currently operational. The assets will be managed by Elegance Living – an experienced operator which manages 40+ senior housing communities across the United States with approximately ~3,900 units in operations and ~500 units under development.
: January 2022
: 8.30 % p.a. (Payable monthly)
: 5 years
: ~13.1%
: Yielding
The Post Office Building , Beverly Hills, California, USA
This investment is a recently refurbished creative office building, located in a highly desirable part of Beverly Hills, CA. The Post is a meticulously designed best in class boutique media asset in prestigious Beverly Hills. Originally constructed in 1990 as a postal distribution facility, The Post was recently converted in 2019 into trophy creative office space, featuring 103,555 rentable square feet and an adjoining 3-story parking structure. The Post building is 92% leased to Live Nation Entertainment with 10.7 years of lease term remaining plus one 5-year option. Live Nation holds center stage as the world's largest ticket seller and promoter of live entertainment (Statista 2021) ,with a market cap of $18 billion as of April 15, 2021. The Post is Live Nation's HQ for their concert division (~80% of Live Nation's consolidated revenue). The remainder of the asset is leased by US Postal Services (USPS) with 5.5 years remaining with two 5-year options.
: October 2021
: Avg. 8.9 % p.a. (Payable monthly
: 5 years
: ~11.8%
: Yielding
Corporate Hill IV Office Building, Corporate Hill Drive, St. Louis, MO, USA
This investment is Class A office building with extensive technology infrastructure located at 12800 Corporate Hill Drive, in one of the strongest submarkets of St. Louis, Missouri, a very office market in the Midwest of the United States. Corporate Hill IV is 100% leased through 2030 to a diversified, multi-national healthcare enterprise, and a Fortune 50 company, (S&P Rating: BBB-; Moody's : Ba1) that provides a portfolio of services to government-sponsored and commercial healthcare programs, focusing on the uninsured and under-insured.
: August 2021
: 15 % p.a.(Payable monthly)
: 3 years
: ~17.00%
: Yielding
Eempolis Office Building , Amersfoort Central Station, The Netherlands
This investment is a high-quality office building, situated on top of Amersfoort Central Station, a strategic hub in the Netherlands that benefits from its excellent accessibility. Eempolis is an Energy Label A office building, built in 2003 and with a total length of almost 400 meters, it is one of the longest buildings in the Netherlands. The building was designed by Arcadis and developed by NS Vastgoed. The property entails 31,865 sqm of office space and a large underground parking garage with 350 spaces. Eempolis offers high-quality office space with an attractive leasing profile. The property has a very solid and diversified tenant base; with 95% occupancy. The property is currently let to 19 tenants with a WALT to break or expiry of 4.5 years.
: July 2021
: 8.75 % p.a.(Payable monthly)
: 5 years
: ~11.00%
: Yielding
RTL Office Building, Media Park, Hilversum, The Netherlands
This investment is a single tenant office campus with dedicated media broadcast studios in the heart of the Media Park in The Netherlands. This well-known office and studio asset is fully leased to RTL Nederland B.V. for 10 years until 31 December 2030. The RTL Campus comprises three separate office buildings totaling 17,293 sqm and 161 parking spots and was recently renovated. It is used as HQ offices and production and broadcast studio space for the various news and media channels of RTL. The parent company of RTL Nederland, has realized a record high turnover in 2019 of € 6.5 billion, an annual growth rate of 2.2%. The parent company of RTL Group is Bertelsmann AG, with over 125,000 employees and €18 billion turnover, and is considered one of the largest media companies globally.
: March 2021
: Avg. 9.2 % p.a.(Payable monthly)
: 5 years
: ~10%
: Yielding
The Corporate Headquarter building of Glaukos Corporation, California, USA
This investment is a medical technology campus located on 9 acres at Aliso Viejo Parkway in Orange County, California, consists of three newly refurbished buildings comprising 159,746sft, and is fully let to Glaukos Corporation on a triple net basis for remaining term of 12 years with an annual indexation of 3%. The campus houses the headquarters offices of Glaukos as well as their primary R&D facilities.. Founded in 1998, Glaukos Corporation is an ophthalmic medical technology and pharmaceutical company focused on novel therapies for the treatment of glaucoma, corneal disorders, and retinal diseases.. Glaukos is a global entity listed in New York Stock Exchange and has a market cap of USD1.7bn (as of Jun 12, 2020).
: June 2020
: Avg. 9.15 % p.a.(Payable monthly)
: 5 years
: ~10.7%
: Yielding
The Quarter Office Buildings - Amsterdam, The Netherlands
This investment is a portfolio of three newly refurbished and high quality office buildings in Amsterdam, Netherlands (“Quarter Buildings”). Located in the Sloterdijk business district in Amsterdam. The Quarter Offices buildings are three high-quality, prominent office buildings comprising 26,014 sqm of office space and around 430 car park spaces. The buildings were fully refurbished in 2017– 2018 to offer modern and appealing spaces to occupiers, in addition to a flexible layout and five-star amenities. The portfolio provides a secure income stream from a diversified tenant roster, with all leases linked to the CPI index for annual rental growth. Major tenants are well known companies in The Netherlands like Aon, Maandag, DPA , EPEX SPOT and Allshare.
: April 2019
: 8 % p.a. (Payable monthly)
: 5 years
: ~10%
Integris Healthcare Micro-Hospital Portfolio, Oklahoma City, Oklahoma, USA
This investment is a forward purchase of a portfolio of micro-hospitals/medical offices let to a JV between Integris health and Emerus Holdings (“The Portfolio”). The portfolio consists of four state-of-the-art micro-hospitals and medical offices located throughout Oklahoma City in Oklahoma. The Portfolio has a total area of 159,303 square feet. The tenant would be a JV entity wholly owned by Emerus, rated (A) by S&P, and Integris, rated (AA-) by S&P. The brand new buildings portfolio will be 100% leased to JV entity for 15 years on an absolute NNN basis with 2.0% annual rent increases.
: December 2018
: 8.25 % p.a. (Payable monthly)
: 5 years
: ~10%
: Yielding
The Netherlands Organization for Scientific Research, (NWO) at the Hague, The Netherlands
The asset is a Class A building located near Central station of Hague. The property was built in 2000 and serves as the Headquarters to the Netherlands Organization for Scientific Research (NWO) (sovereign equivalent credit). Comprising of 13,635 m² office space in a U-shaped configuration over nine stories and has 176 parking places. The office space is well presented with a modern, high quality, and flexible working environment. The property was leased in January 2017 for a term of 14 years and the ground lease has been bought off into perpetuity.
: 31 October 2017
: USD 43.6 mn
: ~ 65 %
: Avg. 8.00 % p.a.
: ~10%
Grade A Single Tenant Portfolio, USA
The Portfolio consists of 6 single-tenant net-leased buildings with a total of 760,533 sq ft, located in 6 states in the US. The average lease length of the Portfolio is 13.5 years with no expirations during the projected holding period. The assets within the Portfolio are predominantly utilized as corporate headquarters or major operational facilities that are mission critical to the tenants.
: 26 June 2017
: USD 134.1mn
: ~62%
: Avg. 8.50% p.a.
: ~10%
Pharmaceutical Product Development , Research Way- Madison, Wisconsin , USA
Pharmaceutical Product Development ("PPD") laboratories campus (The Property"), located at 8500 & 8551 Research Way in Madison, Wisconsin, USA. This 233,694 sft property comprises of two parcels and is 100% leased to PPD (Moody's: B2) with 11.5 years of term remaining. PPD is a world-leading contract research organization providing chemistry, manufacturing and controls laboratory services for all phases of drug development. The subject property is PPD's mission-critical location for its US operations and serves as PPD's only US based pharmaceutical Good Manufacturing Practices (GMP) lab facility, and one of only two worldwide.
: 21 March 2017
: USD 53.25 mn
: 51.50 %
: Avg. 8.85 % p.a.
:~10 %.
Heerema Marine Contractors, HQ , Leiden, The Netherlands
A newly built, high quality office building fully let to Heerema Marine Contractors ("the Property"), located at Leiden, The Netherlands. The Property serves as the Global Headquarters of Heerema Marine Contractors ("Heerema"). Established in 1948, Heerema is a leading marine contractor for offshore oil & gas fields The Property was leased for a term of 20 years in 2015 and the rent is 100% indexed to Dutch Consumer Price Index. The Property comprises 20,616 sq.m. of office accommodation over 10 floors with 586 car park spaces and is built according to BREEAM "Excellent" standards.
: 20 June 2016
: Euro 74.1 mn
: 62%
: Avg. 8.00% p.a.
: 10%.
Saint-Gobain North American Headquarters Philadelphia, Pennsylvania USA
A newly constructed, built-to-suit North American Headquarters building for Saint-Gobain at Philadelphia, Pennsylvania, USA . Saint-Gobain is an investment grade multinational manufacturing company, based in France and listed on the Paris Stock Exchange, and ranked #192 by Fortune Magazine in Global 500 category in 2015. The Property comprises of 321,226 sq.ft. of office accommodation over 2 buildings with 1,100 car park spaces. The Property is 100% leased to Saint-Gobain Corporation under a 15 years triple net lease in addition to two 5-year options and one 3.6-year option to extend on the lease.
: February 2016
: USD 130.2 mn
: 63%
: Avg. 7.75% p.a.
: 9.8%.
Multitenant Retail Property, Crawley, UK
A newly constructed multitenant retail property in Crawley, UK only 35 miles from Central London & three miles south of Britain’s second largest airport – Gatwick at the major commercial Centre of West Sussex. The anchor tenants are Morrisons (Supermarket Giant) and Travelodge (Prominent hotel brand) who contribute around 95% of rental income. The Property comprises of a prime 75,240 sq.ft. supermarket, 110 purpose built bedroom hotel, two retail units (A3 permits) and 506 car parking spaces. The Property has an average lease length of 15.1 years and 22.8 years excluding the break option.
: January 2016
: GBP 47.3 mn
: 62.5%
: Avg. 7.75% p.a.
: 10.5%.
Centrica Norway Ltd, Stavenger, Norway
A newly built, single tenant high quality office HQ building fully let to Centrica Norway Ltd. “Centrica Energy” – a wholly owned subsidiary of Centrica PLC. in Stavanger, Norway. The Property is fully leased to Centrica Energy for a term of 10 years, comprises 10,392 sq.m. of office space, and was completed in March 2015.
: December 2015
: NOK 296.5 mn
: 60%
: Avg. 9.1% p.a.
: 10.1%.
Multitenant Retail Property, Krefeld, Germany
A newly refurbished “downtown retail park” in Krefeld, Germany (“The Property”) leased to a diverse mix of specialist retailers. The Property is anchored by Primark (~60% of rental income), Toys “R” Us, Rossmann – 2nd largest pharmacy chain in Germany and two other well-known retailers. The Property comprises of ~21,900 sqm of inner city retail space with a weighted average lease term of over 9 years.
: October 2015
: Euro 57mn
: 63%
: Avg. 8% p.a.
: 10.5%
Siemens NV, Zoeterwoude, Netherlands
A newly built, high quality office headquarters building that is fully let to Siemens Netherlands NV - a wholly owned subsidiary of Siemens AG. The property comprises of 9,366 sqm of office accommodation over 8 floors with 252 car spaces and has a BREEAM (A) rating. The Property was leased for a term of 12.5 years in March 2014 with Siemens guarantee on the lease.
: June 2015
: Euro 28.8mn
: 60%
: Avg. 8.75% p.a.
: 10.5%
Lenovo Global Server Division HQ, North Carolina, USA
Global Headquarters building of Lenovo’s Enterprise Server Division at Research Triangle Park, in Raleigh North Carolina, USA (“The Property”). The property comprises of 67 acre campus featuring a lake, nature preserve, jogging trails, and recreation area. The Campus includes two recently renovated office buildings totaling 445,484sft and a 39,952 sft mixed-use office/ laboratory building currently under construction. The property is currently leased under a 13 years triple net lease agreement , with a 2.6% fixed annual increase and two 5-year options to extend on the lease.
: February 2015
: USD132.3mn
: 62%
: Avg. 8% p.a.
: ~ 10.4%
VW Car Parts Warehouse in North Hessen, Germany
A forward purchase of a brand new warehouse let to Rudolph Automotive Logistik GmBH. Rudolph operate the facility for Volkswagen AG, and VW provides the rent guarantee under the lease. The property comprises of 105,310m2 spare parts distribution facility operated exclusively for Volkswagen AG. Standard German lease for a term of 10 years from practical completion with a tenant option for an extension for another 10 years.
: December 2014 (Contract signed May 2014)
: ~EUR 49.92mn
: 62%
: Avg. 8.25% p.a.
: 10%
Onninen AS Warehouse, Oslo, Norway
Modern warehouse and offices constructed in 2010 for Onninen AS - a solid privately-owned multinational company founded in 1913 and operating in the Nordics and Baltics. The property is their Norwegian HQ and key distribution warehouse to serve their 28 stores in Norway. The warehouse is 100% leased with 8.5 years remaining to Onninen AS.
: September 2014
: ~NOK 430mn
: 60%
: Avg. 9.4% p.a.
: ~11%
Deer Park Office Campus, Continental Automotive Inc., Chicago, USA
Class A headquarter Office building under a sale & lease back transaction with Continental Automotive Systems Inc. in Deer Park, Chicago, USA. The Property serves as Continental’s USA headquarters for their Interior division and comprises of 351,425ft2 of built up accommodation over basement and seven floors. The Property would be let to Continental under a 13 years lease agreement (B to Floor 4), with 2% annual rent increases.
: September 2014
: USD 47.2mn
: 60%
: Avg. 7.75% p.a.
: 15.2%
Crossley Retail Park, Kidderminster, United Kingdom
A Prime bulky goods modern specification warehouse at Kidderminster. The Property comprises 12 units totaling 204,649 sq.ft. area and with a weighted average lease term of >10 years; offering benefits from a secure income stream to a diversified mix of leading retail tenants while providing tangible value add opportunities.
: November 2013
: ~GBP 45.2mn
: 60%
: Avg. 8.5% p.a.
: 12%
The Green – Student Housing Village at University of Bradford, United Kingdom
A 1,026 bed brand new student housing facility at the University of Bradford. Multi-award winning, The Green is the greenest building in the world (BREAM score of 95.05%). Nominations agreement with the University of Bradford until 2032. The agreement is subject to the university having an option to extend for up to 10 years and obliges the University to fill up to 100% of the rooms with students until 2015/2016.
: June 2013
: ~GBP 46.3mn
: 50%
: Avg. Avg. 8.00% p.a.
: ~12%
Teal Park, Lincoln, United Kingdom
A new 12,632 sqm Siemens PLC ‘Gas Turbine Division’ Global Head Office and Servicing Facility at Teal Park, Lincoln. The Property is 100% leased to Siemens PLC for a firm term of 12 years + 13 years optional. Arzan Wealth being the strategic advisor to the investment opportunity have announced a special dividend to the consortium of investors in the property wherein they have received a total cash yield of 9.25% during 2013, consisting of 7.75% per annum in ordinary monthly yield payments, plus the extraordinary dividend of 1.5%.
: November 2012
: ~GBP 18.1mn
: 60%
: Avg. 7.75% p.a.
: 11.2%
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