Manama – Mubasher: Arcapita, the global investment management firm, announced on Wednesday that it sold its real estate portfolio of senior-care communities in the US in a deal worth $640 million.
Arcapita’s portfolio, which included over 16 facilities and 4,000 residential units across the US, was sold to Healthcare Income, Inc., a real estate investment trust (REIT), according to a statement.
“The properties are one of the largest standalone portfolios of continuing care retirement communities in the US,” Arcapita, said, adding that most 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., Arcapita added.
"Although the US real estate market experienced a period of difficulty following the global economic crisis [in 2008], 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," said Martin Tan, Arcapita's chief investment officer.
Meanwhile, Arcapita CEO Atif Abdulmalik noted that "this transaction represents Arcapita's fifth successful exit in the senior living sector, which continues to benefit from favourable long-term fundamentals.”
