Skip to main content

Structured Finance

Arbah Sauchiehall Mezzanine Finance, UK

sauchiehall

Saudi-based Arbah Capital announces the successful refinancing of a £7m Vendor Facility provided by KKR during the acquisition of the landmark Sauchiehall building in July 2109. The Sauchiehall building is a main feature on Sauchiehall Street, one of the three main High streets of the ‘Golden Z’ in the city centre of Glasgow, UK, and was acquired by Arbah for approximately £60 ($76) million through a shariah compliant investment structure.

The investment property comprises a mixed use of 309,000 square feet of lower ground, ground and six upper floors, with a multi-storey car park above the property.

The retail complex has major defensive brand anchors such as Primark, TK Maxx, PureGym, Sports Direct, Superdrug and WH Smith. The car park is operated by Q-park, a leading car park operator, which operates over 870,000 parking spaces across Europe. The asset therefore offers a diversified mix of fashion, fitness, restaurants, healthcare and beauty, with parking.

Glasgow is the 4th largest city in the UK and the city center ranks as the 2nd most important retail district in the UK after the West End, based on CACI ratings. Glasgow has a population of 650,000, a catchment population of 2 million and is the largest city and economy in Scotland. Sauchiehall Street dates back to the 1800s as a historical retail hub and has an annual recorded footfall of 16 million, which attracts the most footfall of the 3 prime retailing streets in Glasgow forming the ‘Golden Z’.

  • Investment Budget 7.5£ Million
  • Closing Date: 11/2020
  • Target IRR 9%
  • Expected Investment Period: 3+1 Years
Regent Crescent, UK - Exited

Image

Arbah Capital has made the successful acquisition of state-of-the-art projects and effective fund raising for equity part of the package. Arbah Capital successfully raised £26.5m mezzanine finance for the development of 18th Century masterpiece, Regent Crescent, in London. The deal serves as the beginning of new era for Arbah Capital as it is the first ever deal of the firm outside the region. Arbah Capital will be looking forward to expand its footprints as its building block of the growth spree. The required momentum has been gained to further expand our portfolio through similar acquisitions.

"Arbah Capital successfully raised £26.5m mezzanine finance for the development of 18th Century masterpiece, Regent Crescent, in London."
IRR: 10.0% p.a.
Cash yield: 10.0% p.a.
* Quarterly distribution