Key Details:
- United Arab Emirates Resident, American National
- Net worth: $80 Million
- Wanted to purchase 3 distressed properties in Miami, New York and Dubai
- Financing requirements: $11 Million
- Terms offered: 6-month bridge at 2% per month
- 1st Charge over: UK Private Shares, Land in the United States, Special Purpose Vehicle holding the Dubai Property
In this case, we assisted an Ultra High Net Worth individual by creating a bespoke facility that would allow them to capitalize on investment opportunities abroad.
The client was a United Arab Emirates resident with a considerable net wealth, but most were tied up in illiquid assets such as private investments or land abroad. The client came across three opportunities to purchase distressed assets in Dubai and the United States of America, with the goal of benefiting from an arbitrage situation. When they approached us, they had already agreed to purchase all the assets within six weeks. Therefore, they needed a lender who could act swiftly and had lending experience against a mixed collateral pool.
After looking through their assets in detail, we quickly identified that a facility could be constructed using private shares and land. The large plot was valued at $21 million but had considerable development value, with offers to purchase it at $44 million. The private shares in a British trading entity were valued at £2 million with solid projections to increase in significant value. Lastly, since the proceeds were to be used to purchase a Dubai property valued at $6 million, this too, could be pooled into the collateral package, diversifying the risk appetite for the lender considerably.
The loan amount covered the property's full purchase price in Dubai and allowed for further investment into the Miami and New York City opportunities.
This case is an excellent example of how Enness can deal with complex and niche transactions involving various collateral pools and jurisdictions.
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