Embassy, Columbia Pacific to invest ₹1,000 crore in senior-living projects2 min read . Updated: 13 Oct 2020, 04:06 PM IST
- The investment will be made across multiple projects to build a million square feet of senior-living facilities over the next five years.
Bengaluru: Real estate firm Embassy Group has partnered with Columbia Pacific Communities, an assisted living community operator, to launch senior-living projects across cities and will invest ₹1,000 crore.
In an equal joint venture (JV), Embassy and Columbia Pacific Communities will invest ₹1,000 crore across multiple projects to build a million square feet of senior-living facilities over the next five years.
With this, Bengaluru-based Embassy Group, which has a large commercial office and residential portfolio, is venturing into the senior-living asset class.
The first such project under this partnership will be launched at Embassy Springs, an integrated township across 288 acres in north Bengaluru. The first phase will have around 220 units in one- and two-bedroom apartments of 600 – 1,000 sq. ft, which will be priced at ₹45-69 lakh. The second phase will have 180 homes in a premium-priced category. Across the two phases, the JV will invest around ₹400 crore.
The first senior-living project in Embassy Springs is based on a sale model but going ahead the joint venture may build and lease such facilities to consumers.
According to an August report by Anarock Property Consultants, assisted living facilities, both on rent and purchase basis, are likely to see demand post the pandemic. A number of senior-living projects have mainly sprung up in the outskirts of large cities, while tier II and III cities have a larger share of such facilities, the report said.
“Senior living is a big part of the residential market but it’s at a nascent state. There is a lot of demand and not many are building these facilities. We wanted a specialist partner where we will build the facilities and Columbia Pacific will manage and operate them" said Aditya Virwani, chief operating officer, Embassy Group.
Going forward, Embassy will also build such facilities in projects in Mumbai and National Capital Region (NCR), which have come under the merged entity of Embassy and Indiabulls Real Estate Ltd (IBREL), Virwani said. The duo will also look at buying land and developing senior-living projects.
Mohit Nirula, CEO, Columbia Pacific Communities, said, “…In an increasingly vulnerable world, communities are the safest and the most secure places for seniors to live in. The appreciation of having a community stands with and behind you, provides peace of mind to the residents and a sense of relief to their families."
Globally, in US and Europe, senior-living communities are usually operated on a lease model.
In India, Columbia Pacific Communities operates around 1,600 families living across nine such communities across five cities.
Some of the other developers who have senior-living projects are Brigade Enterprises Ltd, Paranjape Schemes, Tata Housing, Ashiana Housing, Max India Ltd’s Antara Senior Living.