SHANGHAI--()--Shanghai Starcastle Senior Living Services Ltd. (Starcastle pronounced in Mandarin Chinese, “Xing Bao”) is a newly created joint venture company formed to develop and operate senior living communities in China. The joint venture company is owned by Fosun Group and Fortress Investment Group. Starcastle received approval from the Shanghai government at the end of July to operate its first senior living community in China, called Xing Bao Zhonghuan. This first project is located in the Baoshan district of Shanghai and is targeted to be open by the end of the year. The community is approximately 13 km from People’s Square (central downtown Shanghai) and 19 km from Hongqiao Airport.
Xing Bao Zhonghuan will be a comprehensive senior living community offering a wide range of housing and service options. It will consist of a mix of independent living units ranging from studios to large two bedrooms. The project will also offer a range of assisted living units that target those with specific needs from dementia to short term rehabilitation services.
In addition to residential units, the community will offer variety of public spaces available for use by residents. These include a full service restaurant, a café, a senior friendly fitness center, mahjong rooms, arts studios, classrooms, library, a tea house, computer room, spa, and hair salon.
A monthly fee will cover basic services for residents including restaurant style dining, in-unit housekeeping, regularly scheduled shuttles to local shopping districts and a wide range of activities. Residents will have the choice to purchase additional services such as private transportation, enhanced housekeeping, and additional in-home personal care services as desired.
Healthcare will serve as a cornerstone of the service offerings to residents. It will include an onsite clinic to provide primary care, onsite facilities to host specialists, access to leading tier 3 hospitals, strategic relationships with local hospitals to ensure timely and quality service in the event of emergencies, assistance with and coordination of prescriptions, home healthcare service and rehabilitation services.
Lilly Ho Donohue, President of Fortress Investment Consulting China and CEO of Starcastle says, “Starcastle Senior Living leverages the distinct expertise of two leading companies. Fortress brings senior living investment and operating expertise from Brookdale Living and Holiday Retirement, two of our portfolio companies and two of the largest seniors housing operators in the United States. Fosun brings a tremendous amount of local market knowledge as well as deep experience in real estate, pharmaceuticals and healthcare. The combined expertise of the two companies and the creation of Starcastle positions us well to fulfill our mission and vision of improving the way China ages and to be the leading provider of senior housing and services in China.”
Chris Jiang, General Manager of Senior Living at Fosun Group and President of Starcastle Senior Living, says, “Given the demographics throughout China and specifically here in Shanghai, there is a huge and growing demand for seniors housing and services. While there are many good, local, government-associated, not-for-profits providers, we believe that there is a need and opportunity for a market based seniors housing product. Starcastle, with the combination of a high quality residential units, a wide range of hospitality services, and integrated healthcare, will give consumers a new choice as they decide how they want to age.”
Starcastle is a brand that was co-founded by Fosun Group and Fortress Investment Group to own and operate senior living facilities as well as engage in other senior living related businesses, such as home health. Shanghai Starcastle Senior Living Services Ltd will operate the partnership’s first senior living community in China, which offers both independent and assisted living units. This first project is located in Baoshan district of Shanghai and is targeted to be open by the end of the year.
Fosun is an investment group listed on the main board of the Hong Kong Stock Exchange (00656. HK), with a focus on China’s growth momentum. As of December 31, 2011, book value of Fosun International is RMB31.8 billion and net portfolio value reached RMB35.0 billion. Currently, Fosun invests in sectors that would significantly benefit from the growth in domestic demand of China, including pharmaceuticals and healthcare, real estate, steel, mining and financial services.
Fortress Investment Group is a leading global investment management company with over $47.8bn of assets under management as of June 30, 2012. Fortress is publicly traded on the NYSE under the ticker symbol (FIG). Fortress’s private equity fund portfolio investments include Brookdale Living (BKD) and Holiday Retirement—two of the largest senior housing operators in the United States.