Safanad acquires skilled nursing portfolio

Safanad, the global, principal investment house in partnership with Formation Capital, the specialist senior housing and skilled nursing investor and asset manager, has recently completed the $ 750 million acquisition of one of the largest standalone skilled nursing portfolios in the US, comprising 68 facilities in east coast states.
This investment partnership is the second that Safanad and Formation Capital have established, the first comprising 36 facilities acquired during 2011 in three separate transactions.
The two investment partnerships now jointly own well over $ 1 billion worth of senior care assets in the US.
The equity for the second partnership was sourced from a combination of existing investors in the portfolio, follow-on investors from the first partnership, new sophisticated investors from the US and the Gulf.
The aging US population combined with the strong policy focus on health care cost containment measures in the US has led to a steadily increasing demand for the services of skilled care nursing facilities.
However, highly regulated clinical standards and operating economies of scale mean that compelling risk adjusted returns are generally only found in the larger better-managed portfolios.
Announcing the latest investment, Ahmed Farid, president of Safanad, said: “This acquisition is a great example of how this partnership is identifying and unlocking value in a very specialist sector at a particular stage in its investment cycle. We will be looking to create value for our co-investors and security for our clients by structuring these businesses to mitigate operational risks and provide solid returns.”
Safanad’s principal-driven approach, carefully structured relationships with partners and institutional investment processes combine to form a unique model which is ideally suited to preserving and growing the wealth of its investors.
With decades of experience in finance and investment across the US, Europe, Asia and the Middle East, its team of industry leading professionals sources investments worldwide within a highly disciplined framework.