Saudi-based Arbah Capital announces the signing of a joint venture agreement in the growing sector of Senior Care facilities in the United States, with a leading Real Estate Developer, Madison Marquette, and a top 20 Senior Care Operator, Meridian Senior Living, both of whom will also co-invest into the portfolio.
The first development is of $35m and is a premier Class A Senior Living community with 136 units/144-beds of Assisted Living and Memory Care, located 12 miles to the east of downtown Tampa, in Brandon, Florida. The Investment Strategy is to exploit the opportunity to develop and provide the best community experience and facility in an undersupplied sub-market at rates comparable to existing “older” facilities.
The facility will initiate operations and aim to achieve occupancy stabilization before an exit is proposed. A market study by the nationally recognized Integra Realty Resources concludes that the submarket is currently underserved by over 600 units.
Madison Marquette, The Development Manager has been established for over 25 years, with an Investment Portfolio in excess of $6bn and a track record of more than 25% IRR on exits throughout 27 years of operations.
Meridian Senior Living, The Operator is among the top 20 largest Senior Living Property Operators in the United States. It is Head Quartered in Washington, D.C. managing over 74 communities across the country in 21 states in addition to Washington DC. It also has development experience and provides unique insight into design from a very operational perspective.
Mr. Mahmood Alkooheji, CEO of Arbah Capital, stated: “This investment represents the key philosophy of Arbah to find for its investors the right growth segments, and to structure investments in those segments with leading partners who have a proven track record. Arbah’s reputation and professionalism attracts best in class partners to offer value added investments to its investors”
Mr. Alkooheji further noted: " We are very pleased to have already identified a pipeline of further opportunities in this sector which we will offer to our investors during the course of 2020. Once Arbah has secured and stabilized the portfolio, this should then give us strong options for exit at a premium.”
As Mr. Alkooheji has previously stated that, “Arbah’s main strategy focuses on acquisition of distinctive assets within excellent locations in defensive sectors like social infrastructure. The Brandon, Florida development is a very well researched opportunity which reflects our investment strategy in finding exclusive high-quality opportunities for our investors. It is these types of investments which will broaden the value creation prospects for our investors within the international market and contribute to our journey into becoming a leading Investment Bank in the region. This investment enhances Arbah’s strategic alliances and relationships which further supports its position as an international gateway for the Saudi Arabian and the regional investors market.”
Arbah Capital is an Investment firm licensed by the Capital Market Authority in Kingdom of Saudi Arabia and headquartered in Dammam with a paid-up capital of SR220 million.