Grosvenor Fund Management has formed its second partnership with Islamic bank Kuwait Finance House to invest up to £380m in US healthcare-related real estate.
Over the next seven years, the partners will buy and develop private-pay senior living facilities and medical office buildings in the US.
Investments will be made through the formation of equity joint ventures with local and regional operating and development partners.
GFM will oversee all investment activities, including sourcing, underwriting, structuring, financing, closing, asset managing, and exiting the partnership’s investments, all of which will comply with shariah law.
Eric Cannon, GFM’s director of acquisitions, America, said: “The formation of this partnership reflects the strength of the US healthcare sector, which is expected to benefit from attractive demand/supply characteristics, driven by favourable demographic trends and limited supply growth.
“During the recent economic downturn, the sector’s cash flows have proven more stable and less correlated with the overall business cycle than other major property types.”
“Healthcare is currently the nation’s largest industry and also the leading projected sector for job creation,” added Douglas Callantine, president of GFM America. “We believe that now is an opportune time to be investing in this sector.”
Ali O Al-Ghannam, head of the international real estate department at KFH, said: “Growing healthcare expenditures both in absolute terms and as a percentage of GDP, coupled with increasing average life spans, are likely to drive demand for this sector well into the future.”
bridget.oconnell@estatesgazette.com
