Pentavirate Launches $100m Luxembourg Sukuk, Rated A-
Seattle, United States — 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 currently underway.