The Gulf Islamic Investments (GII), UAE’s leading Shariah-compliant global financial management firm and Capital Bay Group (CB), a Germany-based fully integrated international investment and asset manager announced a joint venture (JV) to set up a platform in the European senior living real estate market.
The Shariah-compliant investment platform will launch next month with an initial offering of $589.7 million focused on real estate investments, mainly in income-generating and growth properties located in Germany and potentially in other Continental European markets.
“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.”
Mr. Pankaj Gupta, Founding Partner and Co-CEO of GII stated, “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.”
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 specialized clinics for elderly people in the future. The German healthcare market, with its extensive fragmentation of over 2,000 operators, mainly managed by private investors running two to three nursing homes on decentralized sites, represents a particular barrier to entry.
Mr. Rolf Engel, Group CFO of Capital Bay Group and CEO of Capital Bay Fund Management, Luxembourg, said, “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 tailor-made platform enables to act locally for the society and community by joining hands with established international capital. The platform’s strategy is to focus mainly on manage-to-core and upgrade-to-core investments.
Mr. George Salden, CEO of Capital Bay Group, added, “We are very pleased to have GII as our partner given their global and robust investment portfolio and truly believe that this offering will deliver superior risk-adjusted returns to investors around the globe.”
The platform’s debut offering is slated for a first closing in the fourth quarter of 2021, funded by both debt and equity. Capital Bay Group 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.