产业动态 News

04
产业动态 News
FOSUN TIMES 2012.7.30
Strategy of Fosun's senior housing business:
combining China's growth momentum with global resources
By Xiao Yi
■ FOSUN TIMES "Now I know
where I will live 20 years later,"
Guo Guangchang, chairman of
Fosun said in a humorous tone
during the signing ceremony for
the collaboration between Fosun
and Fortress, the largest senior
living investment group in the U.
S.. The words sounded simple but
marked another new milestone of
Fosun's globalization strategy,
and the property investment
themed by "senior living" which
Fosun firmly believes to have a
promising prospect as well as the
huge opportunity derived from
the business.
On 20 June, the first
high-end senior housing project
for senior citizens jointly developed by Fosun and Fortress in
China was finally confirmed to be
situated at Forte Zhonghuan
Community in Baoshan, Shanghai. It is also the first senior housing project jointly developed by
Fosun and Fortress in China
which leverages on the advantages of both parties. Such project
will become a model for China's
senior housing market, laying a
solid
foundation
for
the
large-scale development of similar projects in China in the future.
Tracking back the process of
the "perfect collaboration" between Fosun and Fortress, there
were not much twists and turns
but was still an interesting story.
In fact, since the second half
of 2010, Fosun has kept an eye
on the senior living sector and
made a lot of researches and studies. Apart from organizing special
team to conduct prompt researches on both domestic and foreign
markets, Xu Xiaoliang, assistant
to president of the group, also accompanied Chairman Guo to
study the advanced development
cases of international senior
housing business in the U.S..
In-depth reflection was taken to
seek a sustainable profit model
that was really suitable for the local market in China.
The huge opportunity arising from the domestic senior
housing sector is clearly shown in
a series of figures provided by Xu
Xiaoliang: In 2010, the aged population in China was 17 million,
the size close to the total population of France and Germany; in
2020, the number will increase to
284 million, equivalent to the total population of Japan; and in
2050, the aged population will
even reach 437 million, which is
the projected total population of
the U.S..
The rapid expansion of the
aged population in China reflects
the increasing demand for senior
residence: from 500 million
square meters in 2010 to 700 million square meters in 2020 and
1.3 billion square meters in 2050.
The expedited aging of the society in China undoubtedly provides an unprecedented opportunity for the development of senior
housing in China.
"As there is such a huge market, we must first find out who is the
best in market when seeking part-
ners." Xu Xiaoliang said frankly.
With detailed study and research,
Fosun considers the model running
in America fits the development of
property business in China most,
and establishes three criteria in selecting the right partner: The first is
that it is among the top-tier of the
industry in America. Second, it has
a complete industry china from financing to development and operation. The third is that this partner
has a strong urge to enter the China
market.
In the course of research and
study, Fosun understands that
Fortress possesses abundant experience in senior living and
medical care, and its three subsidiaries, Brookdale, Holiday and
Erickson rank No.1, No.2 and
No.6 in the industry in America
respectively, all of which are
highly competent in operation
and development. The senior living enterprises invested by
Fortress have over 70,000 staff
serving more than 100,000 senior
citizens and members of its management team possess relevant
experience of 25-40 years. As at
the end of the first quarter of
2012, assets managed by Fortress
have reached US$46.4 billion.
Xu described the relationship
between Fortress and Fosun as "if
it's meant to be, you will meet no
matter how far you are apart". The
bond between the two groups became even stronger after further
meetings. Fortress wants to export
its knowledge from experience of
international advanced investment
management in senior living and
elderly care into the China market,
where Fosun will procure for
Fortress local resources in China
and help in its strategic development in the market.
Fosun is moved and touched
by Fortress team's enthusiasm towards China its stanch commitment and passion for senior living business. Ms Lilly Donohue,
Executive Director and President
of the Greater China Region of
Fortress, even abandoned her premium life in the U.S. and moved
to Shanghai with her family.
Such determination to find a firm
footing in China for the development of high-end senior living
market in the Mainland has accelerated and consolidated the pace
of mutual cooperation.
Judging from the present do-
mestic senior housing development, Xu saw a wide gap with
that in foreign developed market.
Although certain developers such
as Vanke and Greentown have
tested the water by small dips and
some venture also showed interest, most projects stay in the conceptual stage and professionalized operations are rare.
During his visit in the U.S.,
Xu was deeply impressed by
Fortress's residences built for the
elderly. "They are so humane, so
considerate," he said, "like the
dining chairs, all with wheels so
that the elderly can adjust their
seat. And the hook on every door
of the rooms. When the occupier
is out of the room, the hook stays
low so that the staff can see and
judge whether the room is empty
without knocking the door and
disturb the elderly.".
All these will be "copied" to
the Forte Zhonghuan Community
Senior Housing Project to provide senior citizens in China with
comprehensive and thoughtful
services. Introducing such advanced and experienced knowledge from the U.S., it is no doubt
that the Baoshan Zhonghuan
Community Senior Housing Project will change the quality of living of senior citizens in China
and set them a new sample.
Xu considered the introduction of such international advanced knowledge of investment
management into the China market by Fosun not only as a grip on
the business opportunity of China
entering an aging society aiming
to realize economic benefits, but
also an endeavor to establish a
warm place as home for the senior
citizens, allowing them to experience love and joy in their social
life, daily activities, learning, rehabilitation and lifestyle. So that
the society can benefit more.
More importantly, just as
what Guo Guangchang, chairman
of Fosun Group said, a successful
cooperation with Fortress marked
the further realization of the investment model of "combining
Chin's growth momentum with
global resources" advocated by
Fosun. Capitalizing on "China's
growth momentum" and incessantly deepening China's advantages, Fosun introduced the global leading senior living brand
Fortress and helped it develop the
market by its strong foundation
and abundant resources in the industry, so that they can share the
benefits of the industry's high
growth in China.
The moment when Fosun
and Fortress exchanged gifts in
the signing ceremony for strategic
cooperation in 2011 is still vivid
in people's mind - an exchange of
the Western chess with the Chinese chess. Not only was it a token of the mutual friendship, it
also served as an evidence of the
seeding and rooting of the global
leading development and operation mode of senior housing in
China, signifying the brilliant
moves of the alliance between
Fosun and Fortress on this profound chessboard of senior housing business.
To be the leading service provider of senior living industry in China
By Yu Benqing
■ FOSUN TIMES On 20 June,
contract signing ceremony for the
first domestic high-end senior
housing project built by Fosun
Group and Fortress, a US company, was held. Location of the project is finally decided at Forte
Zhonghuan Community, Baoshan
District, Shanghai after more than
one year of negotiation and planning. Ms. Lilly Donohue, Executive Director and President of
Greater China Region of Fortress
attended the ceremony with great
pleasure. She expressed that she is
highly confident of the project and
hopes Starcastle, the senior housing project jointly developed by
Fosun and Fortress, will become
the most brilliant icon of the Chinese senior living business.
"I am highly confident of
this senior housing project." Ms.
Donohue said with no hesitation.
Since October 2011 when Fosun
signed the cooperation framework agreement and established a
working group with Fortress, she
has moved to Shanghai from US
with her family, and her future
life will closely link with the senior housing project in China.
Starcastle, the project to be
operated at the end of the year located at Forte Zhonghuan Community, Baoshan District, is
named by combining the Chinese
names of Fosun and Fortress.
"This is the first community in
China built by the two companies
since our cooperation. I hope it
will be a great start for other
'Starcastles' in future." Ms. Donohue said.
"Our aim is clear, that is to
enhance the living standard of the
elderly in China. The initiative of
this project is to leverage our
market experience in US senior
living business and to explore the
high-end elderly caring market in
China.Starcastle is the first concerted attempt made by Fosun
and Fortress."
"We are going to provide
more choices for the elderly,
which is different from traditional
elderly caring services." Ms.
Donohue added. "By comprehen-
sive training of staff, top management system and detailed staff
appraisal, Starcastle will provide
professional and quality service
to the Chinese elderly. It is the
basic. And the next question is
what is more. What services do
the elderly need? When do they
need the services and in what
form? All of these are decided by
the elderly and their family. On
this basis, the elderly can customize their own services which
are suitable for them and in this
way, we can realize the concept
of Starcastle,which is to take care
of the elderly's physical and mental health."
"As the leader of the industry, we must think out of the box.
" Ms. Donohue said. "To integrate the successful experience in
US into Shanghai market, during
the planning of Starcastle, we did
not take anything for granted, instead we made an objective observation and research on the
needs of the elderly in China and
Shanghai and designed such elderly caring service which is both
affordable and caters to their actual needs. This is the way that
we would become the market
leader of senior living business in
China in the coming new era."