Gulf Islamic and Capital Bay launch European senior living jv

Gulf Islamic Investments and Capital Bay have set up a €500m (£429m) senior living joint venture. The investment platform will launch in September with a first deployment intended for Q4 2021. The platform marks Gulf Islamic Investments’ first Europe-focused Sharia-compliant platform for investments in income-producing real estate. The Luxembourg-regulated platform will focus on income-producing and growth properties in Germany. Later deployments could see the platform look further afield to other Continental European markets. GII’s founding partner and co-CEO Mohammed Alhassan said: “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 CFO of Capital Bay Group and CEO of Capital Bay Fund Management, based in 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.” He added that 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 close in Q4 2021, funded by both debt and equity. Capital Bay has more than $7bn of assets under management, while GII’s AUM is over $2bn. They will be jointly responsible for all aspects of the platform.   To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews