Emeritus Corporation (NYSE: ESC) and Seattle-based Columbia Pacific Advisors (CPA) have entered into a memorandum of understanding to begin exploring the potential to develop senior housing in China. As part of the agreement, CPA will conduct due diligence with respect to senior living development opportunities in China and if projects emerge Emeritus will have the opportunity to participate in the venture up to 50%.
“We believe there is huge opportunity for senior housing and senior living services in China. The prospect of partnering with Dan and his team at Columbia Pacific, who have successfully been developing hospitals in Asia for 15 years, is very exciting for Emeritus. Our arrangement enables the Company to participate in the growth of China, with minimal financial risk and resources required at this point in time,” said Granger Cobb, Emeritus Chief Executive Officer.
Columbia Pacific Advisors manages investment funds and has international experience developing hospitals throughout Asia, particularly in India and Malaysia through Columbia Asia, an affiliated company of CPA. Dan Baty serves as Chairman of Emeritus and he is a founder of Columbia Pacific Advisors.
“The potential for senior housing in China is staggering,” Mr. Baty said. “China has more than 167 million people age 60 or over. It is forecasted that this will approach a half a billion by the year 2050. The need is great and the industry is still in its infancy. In many ways China is where the U.S. was in the 1960’s when we first began to develop a senior housing industry for aging Americans,” said Baty.