Pentavirate Launches $100m Luxembourg Sukuk, Rated A-

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. 

About Pentavirate

Pentavirate is a full-service capital placement firm, specializing in risk-adjusted investment vehicles.  Pentavirate provides a solution to over $1 billion of estimated dry powder, while addressing the growing need for Shariah compliant investments, with the guidance of Shariah Scholars. Additionally, our legal and regulatory partnerships in Luxembourg and Delaware ensure the safe and expeditious return of capital to our investors.

Our established relationships with North American national and regional asset managers benefits our investors to be first to market, and ready capital provides the competitive advantage in this fast-moving market.  The combined experience of our team has a proven track record of asset management, asset improvement and financial reporting to deliver full transparency.

Our due diligence and analytics continue to point to acquisitions for self-storage, senior housing, and multifamily in secondary and tertiary North American markets as a stable securitization for our debt offering.  These institutional-grade assets have gained strong interest from investors for their resilience to economic stressors year after year returns.

http://www.pvcompliant.com/investments/sukuk