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Embassy group, Columbia Pacific Communities to invest Rs 165 crore to develop homes for elderly

While Columbia Pacific Group plans to launch 4-5 projects every year across India for a total investment of about Rs 1,000 crore, the Embassy Group is looking forward to launching five projects in southern India.

March 01, 2023 / 04:41 PM IST

US-based Columbia Pacific Communities (CPC) and real-estate developer Embassy Group have announced the launch of Serene Amara, a senior living project in southern Bengaluru for a combined investment of Rs 165 crore.

The project is spread across an area of 2.44 acres. It will house 239 apartments inside Embassy Spring township, which is approximately 288 acres.

The 1 BHK, 2 BHK, and 3 BHK units are priced between Rs 60 lakh and Rs 1.48 crore.

Mohit Nirula, CEO, Columbia Pacific Communities, said that the maintenance charges for each family will be about Rs 12,500 per month.

The launch is scheduled for December 2026 and was announced at a press conference, led by Mohit Nirula, CEO, Columbia Pacific Communities, and Aditya Virwani, Chief Operating Officer, Embassy Group.

"We wanted a specialist partner who would provide an enriching experience for our seniors. In CPC, we found the ideal collaborator. Embassy Group’s brand promise has been to deliver high-quality, future-first, and enhanced living spaces to all age groups -- from co-living for millennials to branded and luxury homes, and now we foray into senior living," commented Aditya Virwani COO, Embassy Group.

While this is CPC's 11th project, the Embassy Group is foraying into the senior living segment for the first time. "With the Embassy Group, we are confident that this community will not only provide a healthy and comfortable space for senior residents but will also help them lead a blissful life," Nirula, CEO, Columbia Pacific Communities, added.

Additional asset class, rentals

Speaking at the event, Virwani said the senior living market, after COVID, has turned into a profitable venture.

"Senior living in India holds a 1 percent market share of the total real estate. In the US, we have a market share of 15 percent and 6-7 percent in Australia. Looking at the land bank we hold, we have a large share in integrated townships, including offices and residential spaces, and we see senior living as an additional asset class," he added.

According to data from property consultants ANAROCK, as of 2021-end, there were as many as 57 senior living projects (developed or ongoing) across the country by the top 12 players, while the number of seniors has been exponentially increasing in India every year.

Virwani said the mismatch in the senior living market today is attracting Embassy Group to foray into the sector.

Nirula said that in the joint development for Serene Amara, the Embassy Group will be responsible for the development while CPC will focus on technology-driven services to seniors. He clarified that rentals will be only available for people who will own a property in Amara, opening doors to investment opportunities.

"We have just welcomed the first residents at The Virtuoso - The Columbia Pacific, a premium senior living project in Bengaluru. The appreciation in real- estate values from the time of launch till today is close to 50 percent," Nirula said.

Virwani told Moneycontrol that the Embassy Group is mulling Phase 2 of Serene Amara -- a more premium senior living space in the luxury segment. "We plan for more projects in southern India, especially in Bengaluru. On a short-term basis, we are looking at five such projects across the country and we hope the 1 percent market share will grow," he added.

Nirula said, for CPC, the company plans to add 4-5 projects every year with a total investment of about Rs 800-1,000 crore in cities where the company is functional.

Souptik Datta Reports real estate, infra and city in Bengaluru. Btw, curiosity never kills the cat.
first published: Mar 1, 2023 02:29 pm