Capital Bay (CB) and UAE-based Gulf Islamic Investments (GII) have acquired two nursing homes on behalf of a new German senior living real estate investment fund.

The two firms said they have invested a double-digit million amount in euros on behalf of the CB GII Senior Living Fund I fund to buy the assets in Holzminden, Lower Saxony, from a private seller. The nursing homes comprise 6,123sqm of built-up area with 133 beds.

Rolf Engel, CFO at Capital Bay, said: “Despite the significant change in market and financing conditions, we are convinced that we can achieve an attractive return for our investors.

“Currently, Capital Bay and GII are in the due diligence process of seven additional properties, the review of which is expected to be completed soon.”

Anni Hönicke, managing director at GII Frankfurt office, said: “We see strong demand for modern space in senior living facilities. Together with Capital Bay we will turn existing assets which may need capex into facilities which are attractive for residents, a variety of operators and our investors.”

CB and GII joined forces in August last year with a plan to invest an initial €500m for a newly created senior living real estate investment platform in Europe.

The CB GII Senior Living Fund I fund, which was launched last year,  pursues manage-to-core and value-added strategies and invests in existing properties with modernisation and/or expansion potential.

The investment focus is on German cities with a population of 5,000 or more and catchment areas with significant demand for all forms of senior living - from barrier-free living to retirement communities, assisted living and full inpatient nursing homes.

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