United Arab Emirates-based Sharia-compliant financial management firm Gulf Islamic Investments (GII) has announced a joint venture to set up a platform to invest in European senior residential real estate.
GII has teamed up with the Capital Bay Group (CB), an international investment and asset manager based in Germany, it said in a statement.
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The Luxembourg-regulated platform will launch this September with an initial offering of € 500 million ($ 590 million) focused on real estate investments, primarily in high-yielding, high-growth properties in Germany and possibly other European markets.
The platform’s debut offer is expected to be completed for the first time in the fourth quarter of 2021 and will be financed by both debt and equity.
Mohammed Alhassan, Founding Partner and Co-CEO of GII, said, “This joint venture is an example of excellent cross-border synergies that combine GII’s significant capabilities with the knowledge and experience of Capital Bay.
“The development of attractive investment opportunities in the European senior residential real estate market enables our MENA-based investors to participate in this coveted asset class that would otherwise be difficult to access from the region.”
Pankaj Gupta (pictured above), founding partner and co-CEO of GII, added, “As we pursue our global growth plans, we look forward to working with Capital Bay Group … long-term.”
Rolf Engel, Group CFO of the Capital Bay Group and CEO of Capital Bay Fund Management, Luxembourg, said: “A growing senior population in Germany and Western Europe is driving a growing demand for all forms of senior housing, assisted living, health care and specialized clinics for the elderly in the future.
“We are pleased to offer a successful and experienced global investor with our platform and our network GII, the opportunity to enter this rapidly growing market segment, to participate in it and to create the urgently needed offer for this asset.”
CB, with assets under management of over $ 7 billion, and GII, with assets under management of over $ 2 billion, will be jointly responsible for all aspects of the platform, the statement said.