Foreign retirement home operators eye China's ageing population
Overseas operators are lured by the mainland's ageing population but are trying to work out an ideal business model amid vague guidelines
International retirement home operators are showing increasing interest in the mainland but experts say it will take a while to find a successful business model.
The guidelines are aimed at speeding up the development of the industry, calling for local governments to work closely with private companies and encouraging innovative services and financial products.
"[The guidelines] are still a little bit vague," said Bromme Cole, a senior housing consultant who runs Hampton Hoerter.
Under other foreign investment guidelines issued recently, international operators may be allowed to form a wholly owned foreign enterprise to own and operate sites designated for senior housing, said Cole, who recently authored Enter The Ageing Dragon, about the mainland's senior housing sector.
"We were particularly happy to see the State Council saying they plan to allocate land for senior care," said Cole Wright, managing director of Merrill Gardens, a US-based operator of retirement communities. It is building its first joint-venture senior housing project in Shanghai, due to open next year.