Grosvenor Investment Management US has sold a 1,174-unit portfolio of senior living properties in New England to the GPT Group, one of the largest diversified listed property groups in Aus
Grosvenor Investment Management US has sold a 1,174-unit portfolio of senior living properties in New England to the GPT Group, one of the largest diversified listed property groups in Australia, on behalf of Kuwait Finance House.
GPT has established a joint venture with the current operator of the facilities, Benchmark Assisted Living of Wellesley, Massachusetts, on the USD268m acquisition of the portfolio, which consists of 15 properties in five New England states.
Grosvenor acquired a 90 percent fee interest in the first 11 properties in 2004 and a 90 percent leasehold interest in the remaining four properties in 2006 as part of recapitalisations of existing joint ventures between Benchmark and AEW Capital Management.
The properties provide three types of senior housing services, independent living, traditional assisted living, and assisted living with Alzheimer’s care. The portfolio’s 1,174 living units are currently 94 percent occupied. Grosvenor identified the portfolio as a high-quality, high cash-flow Shari’ah-compliant investment opportunity for its Middle Eastern client.
‘This portfolio showed remarkable cash flow and appreciation over a 24-month period, providing a strong internal rate of return and multiple of invested capital,’ says Grosvenor senior managing director Dick Layman.
‘It is a testament to the strength of the senior housing market, the quality of Benchmark’s portfolio and management team, and the continued interest of offshore investors in stable U.S. assets.’
Benchmark, a leading provider of assisted living facilities especially in the north-east US, will remain GPT’s operating partner, managing all 15 facilities and providing care and personalised service. Founded in 1997, Benchmark currently owns and operates 43 senior living communities.
Philadelphia-based Grosvenor Investment Management US is the real estate investment management operation of the Grosvenor group in North America and is part of Grosvenor Fund Management, which was established in 2005 as a vehicle for third-party participation in Grosvenor-managed investments.
At the end of June, Grosvenor Fund Management had total funds under management of approximately USD6.1bn billion internationally. The North American operation is currently seeking new investment and development opportunities in the US and Canada, including joint venture capital, across all product types and risk profiles on behalf of its fund and managed account clients.
Grosvenor is a privately-owned group of international property businesses with total assets under management of USD22.9 billion at the end of June. The group is active in the investment, development and asset management of real estate assets through its operating companies in the Americas, the UK and Ireland, continental Europe and the Australia-Asia Pacific region, and its fund management business operates in all these markets.
