The Capital Bay Group (CB), a fully integrated international investment and asset manager based in Germany, and Gulf Islamic Investments (GII), a leading Shari’ah-compliant global financial management firm based in the United Arab Emirates, today announced a joint venture to setup a platform for Shari’ah-compliant investments in European senior living real estate opportunities with a core plus and value add focus. The Luxembourg-regulated platform will launch in September this year with an initial EUR 500 million offering focused on real estate investments, predominantly in 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.”
Pankaj Gupta, Founding Partner and Co-CEO of GII added: “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. We look forward to significantly growing this platform together for the long-term.”
Rolf Engel, Group CFO 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 decentralized 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, added: “Our tailor-made platform allows us to act locally for our society and community by joining hands with established international capital. 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 strategy is to focus predominantly on manage-to-core and upgrade-to-core investments.”
The platform’s debut offering is slated for a first closing in Q4 2021, funded by both debt and equity. CB, with assets under management (AUM) of over $7 billion and GII, with an AUM of over $2 billion, will be jointly responsible for all aspects of the platform–including the investment strategy, portfolio, and asset management–in order to deliver superior returns.
Caption (from left to right): Rolf Engel (CFO, Capital Bay Group), Pankaj Gupta (Co-CEO, Gulf Islamic Investments), Mohammed Al Hassan (Co-CEO, Gulf Islamic Investments), George Salden (CEO, Capital Bay Group).
Source : Joint Press Release