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Arcapita acquires $110m US living communities

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by November 22, 2016 General

Arcapita, a leading global investment management firm, said it has acquired a privately-held portfolio of three senior living communities in the US metropolitan areas surrounding Washington DC and Atlanta for $110 million.

The properties will be managed by an affiliate of The Arbor Company, an Atlanta-based manager of senior living communities with over 30 years of experience in the Eastern and Southeastern regions of the US.

The transaction follows Arcapita’s acquisition of three senior living communities for a total transaction value of approximately $87 million in Colorado earlier this year, building an approximately $200 million portfolio in the senior living sector in the US, said a statement from Arcapita.
 
For Arcapita, a global Shari’ah compliant alternative investment manager, with offices in Bahrain, Atlanta, London and Singapore, the senior living sector is a strategic focus given its long-term investment return potential.

In addition, Arcapita’s management team has significant experience in the sector, having previously acquired, managed and exited from a series of senior living investments with a total transaction value in excess of $1.7 billion in the US and UK.
 
Arcapita pointed out that its current US Senior Living portfolio consists of six independent living, assisted living and memory care communities offering a total of 506 units in the metropolitan areas surrounding Washington DC, Atlanta, Denver and Colorado Springs.

The properties are located in affluent suburbs of major US cities and are located in some of the largest and most economically attractive cities in the country, it added.

On the acquistion, CEO Atif A Abdulmalik said: “We see a lot of potential in the senior living sector. Our team has extensive experience investing in the senior living sector, having managed and successfully exited five senior living portfolios, consisting of over 74 properties, in the past.”

“Previous investments both in the US and UK have returned attractive IRRs and cash-on-cash multiples to investors. We are excited about the prospects of the latest addition to the portfolio and about working with The Arbor Company, a reputable senior living management company operating in this sector,” he noted.
 
Martin Tan, the chief investment officer, pointed out that the senior population was the fastest growing demographic in the US and the 65+ age group is expected to double in size by 2050.

“The supply of senior housing remains limited in certain sub-markets and the senior housing industry as a whole has outperformed multifamily, office and retail real estate sub-sectors to date,” he added.-TradeArabia News Service

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