WSJ: Foreign Investors Betting on China’s Senior Housing Market

A number of global investors are joining local Chinese real estate developers as both look to bank on a senior housing boom sparked by the country’s massive elderly population, Wall Street Journal reports.

Global property firms such as Merrill Gardens Related, a joint venture between real estate developer Related Cos. and senior housing operator Merrill Gardens, have been eyeing major Chinese cities of Shanghai, Harbin and Suzhou for senior housing developments. 

Fortress Investment Group, a New York-based asset manager, with China’s largest mainland conglomerate Fosun International, formed a 50-50 joint venture called Shanghai Starcastle Senior Living Services in 2012.

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The partnership opened a facility in the Baoshan district north of Shanghai in May that already holds 60 seniors, but will feature 171 independent living units and 47 assisted living units once all floors are completed. 

In August, Emeritus partnered with Beijing developer Sino-Ocean Land to develop a 110 bed community called Senior Living L’Amore-Kaijian, which was part of the partnership’s $110 million senior care pipeline in China.

“China’s population is aging very quickly, so there is going to be a huge market and lots of opportunities for investors and operators,” said Serena Xie of Kaijian Huazhan Senior Care Service in the article.

In 2012, China had 121 million people aged 65 and older, representing 9.1% of the population. By 2020, that figure is expected to reach 171 million, or 12.4% of the population, according to data cited in the article from the Economist Intelligence Unit and Monitor Deloitte Analysis.

Read the WSJ article.

Written by Jason Oliva

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