Alternative investment group Gulf Islamic Investments (GII) and Germany's Capital Bay (CB) have acquired via the CB GII senior living fund I two nursing homes in Holzminden, Lower Saxony.
The properties were acquired from a private seller for a Euro double-digit million amount. The CB GII senior living fund I was established by the two parties in 2021.
The nursing homes comprise 6,123 m2 of built up area with 133 beds. Current occupancy is 85% which is expected to increase to 95% once the remodeling work is completed.
'Despite the significant change in market and financing conditions, we are convinced that we can achieve an attractive return for our investors,' said Rolf Engel, CFO at Capital Bay. '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.'
'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,' said Anni Hönicke, managing director in GII Frankfurt's office.
The fund in question pursues manage-to-core and value-added strategies and invests in existing properties with modernization 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.
