en.Wedoany.com Reported - Bahrain-based alternative asset manager Investcorp acquired two senior living facilities in the New York and Los Angeles metropolitan areas last month, as part of a $200 million investment in its U.S. real estate portfolio. Michael O'Brien, the company's co-head of U.S. real estate, stated that the firm plans to invest over $1 billion in senior housing over the next few years.
Investcorp stated in a press release that this transaction occurred shortly after its acquisition of a 140-unit community in Boston, Massachusetts, and that the company has confidence in the sector, hoping to "capitalize on its extremely favorable demographics and market dynamics." Senior housing, which includes independent living communities and assisted living facilities, has seen continuously increasing occupancy rates. According to data from Cushman & Wakefield, the sector achieved its 20th consecutive quarter of occupancy growth in the last three months of 2025, reaching 90%, the highest level in nearly a decade. The three properties acquired by Investcorp have an average occupancy rate of 94%.
Cushman & Wakefield indicated that the pace of new unit construction in 2025 was the lowest since at least 2012, while the population aged 80 and older is projected to grow from nearly 15 million in 2025 to 29.5 million by 2045. At least 70,000 new units will be needed annually over the next decade, but only 6,000 units were delivered in 2025, creating a "significant gap."
Zack Bowyer, Executive Managing Director at the consulting firm, told AGBI that historically, there has been limited Gulf and foreign investment in the U.S. senior housing sector, but this is changing. "Globally, investors are taking notice. We are receiving increasing calls from (foreign) sovereign wealth groups, pension funds, or private equity firms." Bowyer noted that against a backdrop of intense pricing competition in multifamily and student housing, and rising interest rates, the demographics and market fundamentals of senior housing make it more attractive.
Gulf stakeholders, including Saudi Arabia's Arbah Capital, Bahrain's Arcapita, and the Qatar Investment Authority, have invested in senior housing for years. Aron Will, Vice Chairman of CBRE's National Senior Housing Capital Markets, stated that Middle Eastern investors have completed tens of billions of dollars in transactions in this sector over the past two decades, attracted by the returns and a tax structure conducive to using Sharia-compliant debt. Will said, "It is no secret in the U.S. that senior housing is the best-performing asset class." He also pointed out that a new challenge could arise from a scarcity of professional labor due to strict immigration policies, but there is currently no risk of oversupply because construction costs are high and development cycles require at least five to six years.
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