US-based Columbia Pacific Communities (CPC) has unveiled plans to invest approximately INR 200 crore in the development of 2 million square feet (msf) of senior living projects across India within a span of two years. By the end of the fiscal year 2024-25, the company aims to have eight communities, featuring around 2,000 homes, under construction and available for sale across nine cities in India.
“We are planning to add about 800-1,000 senior living homes every year, with a potential revenue of INR 150-200 crore per project,” revealed Mohit Nirula, CEO of Columbia Pacific Communities, in an interview with Moneycontrol.
Presently, CPC operates in Bengaluru, Coimbatore, Chennai, Kanchipuram, and Pondicherry. Furthermore, the company has outlined its expansion into Pune by the end of December 2023. Nirula stated, “In FY 2024-25, we will foray into Mumbai, Hyderabad, and Kolkata for the first time. We will add at least one project in Bengaluru, two in Chennai, and one or two projects in Hyderabad over the next two years.”
The partnerships in Hyderabad and Kolkata are currently in an advanced stage and are expected to become active in FY 2023-24.
CPC has already collaborated with the Nyati Group for a senior living development in Pune, involving an investment of INR 150 crore. Additionally, CPC recently launched a senior living project in Chennai with TVS Emerald, anticipating a potential revenue of INR 175 crore.
Senior living projects and assisted living communities are residential apartments designed for seniors, incorporating special features such as wheelchair-friendly doors, anti-skid flooring, and assistive care to address age-related challenges. Such projects have already emerged in cities like Bengaluru, Hyderabad, Chennai, and Coimbatore.
Nirula further explained that CPC currently offers independent senior living models, where seniors can live autonomously without requiring support or care for their daily activities. However, services like housekeeping and gardening are managed by service providers. “However, today we are looking at a new model called assisted living communities (or rental models), where seniors will require assistance even for their daily activities,” he added.
Under this model, seniors can rent senior living apartments on a monthly basis after paying a deposit, similar to renting standard residential apartments. CPC will charge the developer a certain percentage of revenue as management fees, while providing expertise in design, marketing, and operations. The developer will be responsible for constructing and selling the project.
The first assisted living project will be launched in Bengaluru next year, followed by another one in Chennai. These apartments will require a deposit amount and a rental fee ranging from INR 25,000 to INR 30,000 in cities like Bengaluru. Nirula clarified, “When the senior leaves, the asset will be returned to the developer, and the deposit will be refunded.”
He noted that such models offer flexibility to the senior living sector in India, particularly for older residents whose children reside in other cities. Renting an asset instead of making a substantial investment allows residents to easily adapt to their living arrangements. However, Nirula acknowledged that introducing a rental model for senior living poses challenges in the Indian market.
“The cost of land in the country is much higher, and in such models, capital investments will be significantly greater. Nonetheless, these projects can yield a rental return of 5-6 percent. The combination of rental income, interest on the deposit.
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