Pentavirate, a Seattle-based global investment firm,
announces the issuance of a 5-year U.S. dollar denominated Sukuk of $100
million, backed by U.S. commercial real estate. The investment has received an
institutional rating of (A-) from EuroRating and is being reviewed by Amanie
Advisors to secure the Islamic Fatwa.
“Pentavirate's debut offering is part of an overall $2
billion multi-series Ijara Sukuk program. The first series will target
acquisitions of North America's highest-yielding commercial real estate, focusing
on self-storage, industrial logistics and senior housing.” said Chad Gleason,
Pentavirate’s Managing Director. "Our objective is to provide global
investors with exposure to stable, Shariah-compliant assets in the United
States," added Mr. Gleason.
Danish Chotani, CEO of Burj Financial and Placement Advisor
to Pentavirate in the Middle East, shared, “Sukuk statistics show that 90% of
issuers and 80% of their investors are in the Middle East and Southeast Asia;
thus far, there has been a lack of developed market issuances that allow
investors with Shariah mandates to diversify their portfolios toward
fixed-income assets in high-growth western economies. The few times these
issuances have occurred, the intense demand has resulted in oversubscription.” Mr.
Chotani, further added, "The first series of our non-leveraged Ijara Sukuk
will have a 5-year term, offering a coupon aligned with the underlying
investment, plus an offering size that can adapt on demand”.
Pentavirate has hired international law firm Mayer Brown to
advise on the issuance of the $100 million Sukuk. Pentavirate’s team has a
successful track record in acquiring cash-flowing properties from
owner-operators and then upgrading them to institutional-level performance for
later disposition to Real Estate Investment Trusts (REIT) and fund managers.
The first series is expected to be issued by Q2 of 2023. The
selection of a lead arranger and the subsequent investment road show are