Buyout firm Arcapita sells $640 mln U.S. real estate portfolio: Reuters

(Reuters) — Bahrain-based Islamic investment firm Arcapita said on Wednesday it had sold its real estate portfolio of retirement communities across the United States to NorthStar Healthcare Income Trust for $640 million.

The portfolio includes 16 facilities and 4,000 residential units for continuing senior care. Net operating income from the portfolio grew by 41 percent between 2010 and 2014, despite a slump in the U.S. housing market following the 2008 financial crisis.

“This transaction represents Arcapita’s fifth successful exit in the senior living sector, which continues to benefit from favourable long-term fundamentals,” said Atif Abdulmalik, Arcapita’s chief executive officer. “We are pleased with the profitable outcome of this investment.”

Abdulmalik said the firm has given $3 billion in exit proceeds to its investors in the last two years but did not give a breakdown of profits for its real estate portfolio exit.

In November, Arcapita completed a $100 million fundraising, a little over a year after emerging from Chapter 11 bankruptcy driven by debt repayment difficulties.