Capital Bay and UAE-based Gulf Islamic Investments (GII) are planning to invest an initial €500m for a newly created senior living real estate investment platform in Europe.

The companies said they have set up the platform to target real estate investments, predominantly in income-producing and growth properties located in Germany and potentially in other continental European markets.

The platform intends to complete its first deal in the first quarter of the year, funded by both debt and equity. 

Capital Bay and GII will be jointly responsible for all aspects of the platform–including the investment strategy, portfolio, and asset management–in order to deliver superior returns.

Mohammed Alhassan, founding partner and co-CEO of Gulf Islamic Investments, said: “This joint venture is an example of excellent cross-border synergies where GII’s significant capabilities join forces with the knowledge and experience of Capital Bay.

“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.”

Pankaj Gupta, founding partner and co-CEO of Gulf Islamic Investments, said: “As we pursue our global growth plans, we are pleased to join hands with Capital Bay Group, a proven and trusted strategic partner who shares our overall investment ethos and long-term vision for the senior living real estate asset class.

”Capital Bay is at the forefront of healthcare real estate in Europe, allowing us to efficiently expand and diversify our portfolio offerings through this excellent uncorrelated investment opportunity ensuring both income and growth.”

Rolf Engel, group CFO of Capital Bay and CEO of Capital Bay Fund Management, Luxembourg, said: “A growing senior population in Germany and Western Europe will lead to an increased demand for all forms of senior living, assisted living, health care and specialised clinics for elderly people in the future.”

Engel said 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.

”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 asset.”

George Salden, CEO of Capital Bay Group, said: “Our tailor-made platform allows us to act locally for our society and community by joining hands with established international capital.”

Salden said the platform’s strategy is to focus predominantly on manage-to-core and upgrade-to-core investments.

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