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

opportunistic

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​​
​​​​
+
opportunistic

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%​​
​​​
+
opportunistic

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
​​
+
opportunistic

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%​​
+
opportunistic

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%
+
opportunistic

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.
~11 %.
+
opportunistic

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 se​​​​rves 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​%.
+
opportunistic

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%.
+
opportunistic

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%.
+
opportunistic

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%.
+
opportunistic

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%
+
opportunistic

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%
+
opportunistic

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%
+
opportunistic

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%
+
opportunistic

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%
+
opportunistic

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%
+
opportunistic

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%
+
opportunistic

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%
+
opportunistic

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%
+