Bahrain-based alternative investment firm GFH Financial Group has acquired a portfolio of medical offices in the US for $200 million, taking the total value of healthcare assets it owns in the country to $400 million.
The portfolio comprises 11 assets spread across the US states of North Carolina, South Carolina, Georgia, Utah, Wisconsin, Ohio, and Texas. The assets are leased to some of the largest names in US healthcare, including Cleveland Clinic, Texas A&M Health Science Center, Novant Health, Spartanbrug Regional Healthcare System, Texas Health Resources and Baylor Scott & White Health.
The firm has been lapping up medical and healthcare assets in the wake of the Covid-19 pandemic.
“The pandemic has underlined a need for more outpatient services and continued demand for healthcare services. As a result, we are seeing strong investor sentiment in the medical office sector,” said Nael Mustafa, co-chief investment officer of real estate at GFH.
“This trend is particularly true in the US, where healthcare spending comprises around 18% of GDP, compared to around 10% for most other developed countries,” he added.
GFH has also been focussing on the healthcare sector outside of the US and within the Middle East and North Africa (MENA) region itself.
Just last month, it announced the acquisition of a 60% stake in the UAE-based Multi-Speciality Healthcare Partner Holding Ltd for over $100 million. GFH’s healthcare arm Healian will manage the new investment.
Previously, GFH acquired a portfolio of 14 logistics assets in the US in a deal worth more than $2 billion. Earlier this year, GFH struck a $200-million deal to acquire residential properties in Las Vegas, bought a student housing portfolio affiliated to top-rated US universities, purchased a warehousing and distribution logistics facility in Ohio for $100 million and acquired a distribution facility in Chicago.
GFH is one of the most active financial groups in the Gulf region in terms of dealmaking. Its businesses include asset management, wealth management, commercial banking and real estate development.
It manages a portfolio of global real estate assets valued at more than $2 billion. This includes assets in industry segments including logistics, technology, student housing, healthcare and multifamily residential.
While most of GFH’s deals in 2021 have been in the real estate sector, it has also sealed a handful of transactions in other sectors such as financial services and education. These include buying a 70% stake in the British International School of Tunis in Tunisia’s capital in June this year.