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Arcapita, the Bahrain-based investment firm, has announced that it has acquired a privately-held portfolio of senior living communities in Colorado, United States, in a joint venture with MorningStar Senior Living.

The transaction value totalled about $85 million, Arcapita said in a statement.

It added that the transaction is expected to be the first in a series of acquisitions of senior living facilities by Arcapita as it looks to develop another sizeable senior living portfolio in the United States.

Arcapita’s management team has previously acquired, managed and exited from a series of senior living investments with total transaction values in excess of $1.5 billion in the United States and United Kingdom.

The current portfolio consists of three assisted living and memory care communities offering a total of 196 units and 243 licensed beds in the Denver and Colorado Springs, Colorado.

Atif A Abdulmalik, Arcapita’s CEO, said: “The Arcapita team has extensive experience investing in the senior living sector, having previously managed and exited five successful senior living transactions, all of which have returned attractive IRRs and cash-on-cash multiples to investors.

“We are excited about the prospects of this investment and about partnering with MorningStar, a high quality developer and operator in this sector. Our investment team will continue to pursue investment opportunities in the US real estate sector which offer investors stable income streams.”