Bahrain-based Arcapita Bank said it has sold 80 per cent of its stake along with that of its investors in five senior housing facilities in suburban London to Healthcare REIT, a real estate investment trust based in Ohio, US.

The completion of the sale fetched Arcapita and its investors more than the initial target returns, said the company in a statement.

Arcapita had invested in the senior housing facilities in 2003 through a joint venture with an affiliate of Sunrise Senior Living.

As per the deal, Healthcare REIT, which recently announced its acquisition of Sunrise Senior Living, will acquire the remaining 20 per cent interest in the properties at the closing of its Sunrise transaction.
 
Atif A. Abdulmalik, Arcapita’s chief executive officer, said the investments have benefited from favourable demographics and their geographic proximity to London.

"Despite a number of challenges presented by the recent economic slowdown in the UK, 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," he remarked.

"This excellent outcome demonstrates Arcapita’s asset management capabilities and ability to deliver profitable exits under its current circumstances," he added.

Arcapita's four principal lines of business are private equity, real estate, infrastructure and venture capital. The company has offices in Atlanta, London and Singapore.-TradeArabia News Service