Safanad acquires US nursing portfolio for $750m
Dubai, September 18, 2012
Dubai-based investment house Safanad has completed the $750 million acquisition of one of the largest standalone skilled nursing portfolios in the US, in partnership with Formation Capital.
A major player in the finance and investment sector across the US, Europe, Asia and the Middle East, Safanad said this investment partnership is the second with Formation Capital, a specialist senior housing and skilled nursing investor and asset manager.
The first was 36 senior care facilities acquired during 2011 in three separate transactions, the Dubai-based company said in a statement.
Safanad was established in 2009, operating globally from Geneva, London, New York and Dubai.
The recent acquisition comprises 68 senior care facilities in the US east coast states. These facilities are leased to a top-ten operator.
With this, the two investment partnerships now jointly own well over $1 billion worth of senior care assets in the US, the statement added.
Safanad said the equity for the second partnership was sourced from a combination of existing investors in the portfolio, follow-on investors from the first partnership and new sophisticated investors from the US and the Gulf.
Announcing the investment, Ahmed Farid, the president of Safanad said, "This acquisition is a great example of how this partnership is identifying and unlocking value in a very specialist sector at a particular stage in its investment cycle."
"We will be looking to create value for our co-investors and security for our clients by structuring these businesses to mitigate operational risks and provide solid returns," he stated.
The aging American population combined with the strong policy focus on healthcare cost containment measures in the US has led to a steadily increasing demand for the services of skilled care nursing facilities," said Farid.
"However, highly regulated clinical standards and operating economies of scale mean that compelling risk adjusted returns are generally only found in the larger better-managed portfolios," he explained.
"The company’s principal-driven approach, carefully structured relationships with partners and institutional investment processes combine to form a unique model which is ideally suited to preserving and growing the wealth of its investors," he added.
Safanad deploys its own permanent capital across a portfolio of mainly real estate and private equity related investment platforms, generating strong returns and extending co-investment opportunities to investment partners.-TradeArabia News Service