UAE's Gulf Islamic Investments in joint venture to fund homes for senior citizens in Europe

Dubai: UAE and Gulf investors looking at Sharia-based property funding opportunities have a new platform to do so. UAE-based Gulf Islamic Investments has entered a joint venture with Germany’s Capital Bay Group for an “initial” 500 million fund exclusively for senior living related property investments in Europe.

The fund will principally target income-generating assets in Germany and elsewhere in continental Europe. GII had in the recent past committed significant investments in London and Paris for trophy assets.

“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,” said Mohammed Alhassan, founding Partner and co-CEO of GII.

The Luxembourg-regulated platform will launch in September. The platform’s debut offering is slated for a first closing in fourth quarter, funded by both debt and equity. Capital Bay has assets under management (AUM) of over $7 billion and GII’s tally is at over $2 billion. They will be jointly responsible for all aspects, including the investment strategy, portfolio, and asset management.

More space needed

“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," said Rolf Engel, Group Chief Financial Officer of Capital Bay Group and CEO of Capital Bay Fund Management. "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."