Investment and asset management group Capital Bay has inked a new partnership with Shari’ah-compliant global financial management firm Gulf Islamic Investments (GII) to establish a senior living platform in Europe.
The joint venture will focus on Shari’ah-compliant investments in European senior living real estate opportunities with a core-plus and value-add focus, and is set to launch in September with an initial €500 mln offering.
The Luxembourg-regulated platform will focus on income-producing and growth properties located in Germany and potentially in other Continental European markets.
Mohammed Alhassan, founding partner and Co-CEO of GII, commented: '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. We are excited to partner with Capital Bay and look forward to our world-class teams working together.'
Rolf Engel, group chief financial officer of Capital Bay Group 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 specialized clinics for elderly people in the future.
'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.'
The platform’s debut offering is slated for a first closing in Q4 2021, funded by both debt and equity. Capital Bay, with assets under management (AUM) of over $7 bn (€5.9 bn) and GII, with an AUM of over $2 bn, will be jointly responsible for all aspects of the platform - including the investment strategy, portfolio, and asset management.
