Foreign Investors to Work with Developers in Investing in Elderly Housing
China’s senior citizens are now being eyed by foreign investors as several global property firms are now working with domestic developers in investing in elderly housing as the number of Chinese elderly increases. Senior housing operator Merrill Gardens of the U.S. is now working together with local developers in constructing facilities for the elderly living in Harbin, Suzhou and Shanghai. Although the venture still has no equity stakes in the projects it is planning to purchase stakes in the following years.
In the past months SinoOceanLand a Beijing based property developer and Columbia Pacific a Seattle real estate company is also working together to operate the Senior Living L’Amore-Kaijian a faculty in the Beijing Yizhuang District. Another developer also opened a facility in Shanghai with the help of Columbia Pacific Cascade health care. As the population in china ages quickly investors sees a huge market and opportunities.
Fortress Investment Group a New York based asset manager along with Fosun International created a 50/50 joint venture Shanghai Starcastle a senior Living Service which they opened last year and recently opened a facility in Baoshan. The facility housed 60 seniors and they are planning to learn the operations slowly as the facility grows. After all of the floors of the facility is finished it will house 171 independent living units and 47 assisted living units.
In 2012 China has 121 million residents aged 65years old and above which is around 9 percent of the population. And by 2020 the population is estimated to reach 171 million. Chinese leaders are pushing for the development of elderly services and have already waived business taxes on maintenance of facilities for the elderly and decreased taxes in some of the nonprofit senior homes.