Bahrain-based Arcapita Bank announced the sale of its and its investors’ 80 per cent interest in five senior housing facilities in suburban London. The acquirer was Healthcare REIT, Inc., a publically traded real estate investment trust based in Ohio, USA. Arcapita invested in the senior housing facilities in 2003 through a joint venture with an affiliate of Sunrise Senior Living, Inc. Healthcare REIT, which recently announced its acquisition of Sunrise Senior Living, will acquire the remaining 20% interest in the properties at the closing of its Sunrise transaction.
“The investments have benefited from favorable demographics and their geographic proximity to London. Despite a number of challenges presented by the recent economic slowdown in the United Kingdom, Arcapita’s real estate team worked effectively with our joint venture partner to enhance the performance of the portfolio, delivering approximately 2.8 times cash on cash return for our investors over the holding period of the investment and exceeding initial target returns. This excellent outcome demonstrates Arcapita’s asset management capabilities and ability to deliver profitable exits under its current circumstances,” Atif A. Abdulmalik, Arcapita’s Chief Executive Officer, said.