Estates Gazette – Arzan Backs RER’s £600m Isle of Dogs Plan

Dubai-based Arzan Wealth is funding plans to create a £600m retail-led destination on the Isle of Dogs, E14 — its first non-income producing investment in the UK.

The private business, advised by James Caan’s 90 North, has been revealed as the backer of former Ballymore director Tim Farrow’s Real Resolution’s purchase of a half share in Ashbourne Beech. Ashbourne is the vehicle established to bring about the 1.3m sq it Crossharbour District scheme.

Arzan, led by chief executive Muhannad Abulhasan, manages more than $750m (£444.6m) for wealthy clients. It made its UK debut in 2012 with the acquisition of a 125,000 sq ft warehouse and related offices let to L’Oreal for £9.8m, which it sold last month to a UK fund for £10.9m, reflecting an IRR of 16.6% for its investors.

The Dubai investment house aims to buy $500m of assets in the UK over the coming years and is targeting an annual yield of around 8%.

The decision to back the Crossharbour scheme is a break from this strategy, however.

Nick Judd, founding partner at 90 North, said: “Income-producing properties in the UK are starting to look very expensive as a result of money targeting the market. International investors such as Arzan are becoming more confident about development, which is looking like a more feasible way to find attractive yields.”

Article from Estates Gazette