NEW DELHI: Columbia Pacific Communities (CPC), a leading player in
senior living
, and
KITES Senior Care
, a
geriatric care service provider
, are set to merge to expand their footprint across the country to 10,000 units in senior living, and 2,000 beds in ‘
out of hospital
’ geriatric care centers in five years.
KITES Senior Care has a
major investor
, Dr Ranjan Pai who invested about Rs 60 crore through his family office in two earlier funding rounds, and will hold 35% stake in the merged entity.
As part of the agreement, CPC, part of the US-based Columbia Pacific Group, will invest about Rs 65 crore to pick up a 25% stake in the merged entity.
The company post merger is valued around Rs 250 crore.
The merger combines CPC’s experience in senior living with KITES’s medical expertise, creating India’s first and largest Continuing Care Retirement Community (CCRC), Dr Ranjan Pai, chairman Manipal Education and Medical Group (MEMG) told TOI.
The financial infusion will fuel KITES’s expansion into six cities across southern India, aiming to develop over 1,000 beds in more than 15 facilities, initially, Rajagopal G Co-Founder and CEO, KITES Senior Care said.
CPC, part of the US-based Columbia Pacific Group, has a runway to add 1200 residential units to the existing 1750 residential units, thereby resulting in 3000+ units under management in two years.
The development aligns with the growth trajectory of the Indian senior care market, targeting a combined market size of $30bn covering senior living and ‘out of hospital’ senior care.
“The coming together of these two platforms in the senior care continuum underlines our commitment to enhancing the quality of life for the elderly. The elder care space is still evolving in our country. Though still at a nascent stage, it has a huge potential”, Dr Pai added.
Rising life expectancy, nuclearisation of families, and higher income levels are the growth drivers in the space.
The Indian senior living market has the potential to grow to around $12 billion by 2030, up from $2 to $3 billion, on the back of an expected rise in median age and an ageing population fuelling an increase in demand for senior housing, according to Colliers, a leader in real estate services and investment management.
Nate McLemore, MD, Columbia Pacific Investments said: “We are bringing together the best of both worlds — KITES’s innovative care models and our proven expertise in community living — to significantly enhance the quality of life for our seniors.”
