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New €500 million platform to invest in senior living in Europe

The opportunities in Europe’s senior living sector are attracting new investors from beyond the Continent. A new joint venture is setting up a €500 million platform for Shari’ah-compliant investments in retirement homes in Europe. The Capital Bay Group has joined forces with Gulf Islamic Investments (GII) to target assets with a core plus and value-add focus.

The platform , regulated in Luxembourg, will launch in September with an initial €500 million offering focused on real estate investments in income-producing properties located initially in Germany and then potentially expanding to other countries in Continental Europe.

The signing of the JV between Capital Bay and Gulf Islamic Investments

“The development of attractive investment opportunities in the European senior living real estate market enables our MENA-based investors to participate in this highly desirable asset class which would otherwise be difficult to access from the region”, said Mohammed Alhassan, founding partner and Co-CEO, GII.

The joint venture was established to maximise cross-border synergies, the two groups said, joining GII’s capabilities with the knowledge and experience of Capital Bay, a company that has been at the forefront of healthcare real estate in Europe.

“With our platform and network we are delighted to offer GII, a successful and experienced global investor, the opportunity to enter and participate in this fast-growing market segment and create the urgently-needed supply for this segment”, said Rolf Engel, Group CFO, Capital Bay Group, and CEO, Capital Bay Fund Management.

The expectation is that a growing senior population in Germany and Western Europe will lead to an increased demand for all forms of senior living, assisted living, healthcare and specialised clinics for elderly people in the future.

According to Engel the German healthcare market, with its extensive fragmentation of more than 2,000 operators, predominantly managed by private investors running two to three nursing homes on decentralised sites, represents a particular barrier to entry. Hence the need for a foreign investors to team up with a local specialist.

“Our tailor-made platform allows us to act locally for our society and community by joining hands with established international capital”, said George Salden, CEO, Capital Bay Group. “We truly believe that this offering will deliver superior risk-adjusted returns to investors around the globe”.

The platform has a long-term outlook and its strategy will be to focus predominantly on manage-to-core and upgrade-to-core investments.