The future development will be a combination of organic and inorganic growth and the company will also be looking at some of the tier II cities as well for development of senior living residential projects.
The Embassy Group on Tuesday announced its foray into a new asset class, senior living, with an initial investment of Rs 380 crore in a joint venture with Columbia Pacific Communities, part of the Seattle-based Columbia Pacific Group. A 50:50 joint venture between both, its first project will come up in Bengaluru with 250 units in one and two bedroom, hall, kitchen formats ranging from Rs 45 lakh to Rs 70 lakh.
The first senior living project will be launched at Embassy Springs, a self-sustained community in north Bengaluru, spread across 288 acres. While the first phase of 250 units with unit sizes of 600-1,000 sq ft carpet area will entail an investment of Rs 160 crore, the second phase will have 180 homes at an investment of Rs 220 crore. The second phase will be a more premium offering.
Speaking to FE, Aditya Virwani, COO, Embassy Group, said that survey shows that there is a ready stock of 10,000 units catered towards senior citizens in India currently and another 10,000 units are under construction. However, there is a huge gap in supply and demand which stands at a staggering 2.40 lakh units.
“Senior living is a big part of residential segment globally, however, in India it is very nascent and new and no one is doing it at a large scale. We want to get into this space on a long term basis and we have set ourselves a target of doing a million square feet of sales in the next four to five years and that equals to roughly 900 units with about Rs 1,000 crore of investment,” he said.
Virwani said the company would be exploring other markets like Chennai and Hyderabad in the south and will also be looking at launching projects for senior living in Mumbai and NCR through the merged listed entity of Indiabulls Real Estate. The future development will be a combination of organic and inorganic growth and the company will also be looking at some of the tier II cities as well for development of senior living residential projects.
According to Embassy, India will be home to 500 million senior citizens by 2050. “Culturally, we are moving away from the joint family idea which means that increasing number of senior citizens will be deprived of care in the coming years. With limited supply from Grade A developers, there is an urgent need to cater to this segment with well-designed and fully serviced facilities,” he said.
Virwani said that the senior living facilities will be designed to meet international standards. In order to make residents live healthier for longer, the communities would offer a packed calendar of resident engagement events such as book readings, yoga and mindfulness sessions, drumming sessions, pottery and storytelling workshops etc. Besides senior friendly amenities and medical support, the communities will be fully serviced including food, housekeeping and 24-hour assistance.
Columbia Pacific Communities has over 40 years of experience in building, managing and operating senior living communities in USA, China, Canada, the UK, and India.