Arcapita Sells US Real Estate Portfolio for $640 Million

MANAMA, Bahrain, Arcapita, the global investment management firm, announced today the sale of a real estate portfolio of senior care communities with over 16 facilities and approximately 4,000 residential units located across the United States. The portfolio was sold to NorthStar Healthcare Income, Inc., a real estate investment trust (REIT), for a transaction value of approximately $640 million.

The properties are one of the largest standalone portfolios of continuing care retirement communities in the United States. The majority of the facilities are full-service communities that offer a mix of independent living, assisted living, Alzheimer’s care and skilled nursing care. The portfolio is managed by Watermark Retirement Communities, Inc.

Martin Tan, Arcapita’s Chief Investment Officer, said, “Over the past seven years, senior housing in the United States has outperformed other property types. Demand continues to be driven by a number of factors, including an aging baby boomer population, an increasing recognition of the value provided by premium communities and the broader housing market recovery. Although the US real estate market experienced a period of difficulty following the global economic crisis, Arcapita’s investment and post-acquisition team pursued a number of successful strategic and operational initiatives. As a result of these initiatives, the portfolio maintained strong occupancy levels and net operating income grew by 41% from 2010 to 2014.”

Atif A. Abdulmalik, Arcapita’s Chief Executive Officer, commented, “This transaction represents Arcapita’s fifth successful exit in the senior living sector, which continues to benefit from favourable long-term fundamentals. We are pleased with the profitable outcome of this investment, which follows a series of positive and notable exits achieved over the last two years by Arcapita. During this period we have delivered approximately $3.0 billion in exit proceeds to our investors. We continue to focus on maximizing the value of the current investment portfolio and on introducing new investments opportunities to our investors. In particular, Arcapita will continue to pursue opportunities in the senior living sector in the US.”

About Arcapita
Arcapita is a global Shari’ah compliant alternative investment manager, with offices in Bahrain, Atlanta, London and Singapore. Arcapita’s principal lines of business are private equity and real estate, and it has a 17 year management track record of over 70 investments with total transaction value in excess of $30 billion.