Fosun to boost housing projects for the elderly

Shanghai group eyes opportunities from rapidly greying population as it mulls more ventures with US senior-housing operator Fortress

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The rapid increase in the number of elderly people on the mainland is seen by conglomerate Fosun International as offering potential for the housing market. Photo: Reuters

Published: 3:04pm, 22 May 2013Updated: 3:51am, 23 May 2013

Mainland conglomerate Fosun International plans to build more housing projects for the elderly, betting on ballooning demand for this niche as the population ages.

"Together with [the United States-based] Fortress Investment Group, we will sign five to six more projects for the elderly, mainly in major cities, including Beijing," Fosun chairman Guo Guangchang said yesterday.

Fortress has partnered Fosun to operate joint venture Shanghai Starcastle Living Services, which already has a housing project for the elderly in the city.

Starcastle would expand into other key mainland cities over time, Guo said after Fosun's annual general meeting yesterday.

Fortress is publicly traded on the New York Stock Exchange. Its private-equity portfolio investments include Brookdale Living and Holiday Retirement - two of the largest senior-housing operators in the US.

"We are exploring how to tie our insurance and medical businesses into homes for the elderly," Guo said.

Shanghai-based Fosun has invested in insurance businesses, including a 50 per cent interest in Pramerica Fosun Life Insurance, which is a joint venture with Prudential Financial; and an 85.1 per cent interest in Peak Reinsurance, which is co-invested by the International Finance Corp of the World Bank.