Co-investors set to benefit from strong risk-adjusted returns

Jeddah, 17 September, 2012

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. The facilities are leased to a top-ten operator.

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 healthcare 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.

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About SAFANAD
SAFANAD was established in 2009, operating globally from Geneva, London, New York and Dubai.  It deploys its own permanent capital across a portfolio of mainly real estate and private equity related investment platforms, generating strong returns and extending co-investment opportunities to investment partners.

Its investment strategy has a global focus, based on a top-down analysis of key market opportunities and other financial dislocations, using its proprietary 'weather map' model which targets compelling investment opportunities stemming from events such as changes to economic strategy, fiscal policy, or regulatory controls,  often leading to return on capital differentials.

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.

The firm's multicultural senior management team has worked together in various guises for over 15 years and, collectively, has previously invested in excess of $20 billion in private equity, real estate, hedge funds, listed equities and fixed income in the US, Europe, Middle East and Asia.

The lessons learned from the financial crisis have been many, but SAFANAD believes that the most important is that investors look for partners who share not only their views on opportunity and risk but also actively commit alongside them, creating real alignment of interest and a mutual bond of trust.

For more details, please contact:
Saeed Al Amoudi
Senior Media Relations Executive - TRACCS
Tel: +966 2 662 5757
Fax: +966 2 639 9540
Email: saeed.alamoudi@traccs.net

© Press Release 2012