Keppel Land enters China's senior living market with acquisition of new senior living facility in Nanjing

The facility is envisaged to become a premier assisted-living community with care capabilities and around 400 beds.

Keppel Land Limited has, through its wholly-owned subsidiary, entered into an agreement to acquire a new senior living facility in Nanjing’s Qixia District on Dec 21.

The facility, which was acquired from China Overseas Land & Investment Limited, has a total floor area of 19,846 sqm (213,620.57 sq ft). The facility is located about 6km away from the downtown core of Nanjing.

The facility will be fitted out and operated by Keppel Land China. It is envisaged to become a premier assisted-living community with care capabilities and around 400 beds when it opens in the second half of 2023.

Keppel Land has also separately signed two memoranda of understanding (MOU) at the 16th Singapore-Jiangsu Cooperation Council meeting on the same day. The MOU will advance the company’s expansion into Nanjing.

The first MOU will see Keppel Land collaborating with the People's Government of Qixia District to provide high-quality senior care services in the district, while the second MOU will see Keppel Land China and China Overseas (Nanjing) working together in areas spanning urban renewal, senior living as well as asset development, operation and management in the city.

According to the Chinese National Bureau of Statistics, China has the largest senior population in the world. The country has about 267 million of elderly aged 60 years old and above as at the end of 2021. The Chinese government also stressed the repositioning of institutional care, private sector investment and participation, and the integration of medical and senior care services as the top three policy themes in its 14^th Five-Year Plan for senior care services in February.

Nanjing is one of the largest cities in the Yangtze River Delta and is one of the richest cities in the country. Of its total population of 9.42 million, about 20% of them are above 60 years old, as at the end of 2021.

“We have identified senior living as one of the growth engines of Keppel Land’s strategy to be an asset-light provider of innovative and sustainable urban space solutions. We are excited to embark on our first dedicated senior living facility in Nanjing, in response to the increasing demand for high-quality medical and elder care amenities to support China’s aging population,” says Louis Lim, CEO of Keppel Land.

He adds: “The Nanjing assisted-living community will be a showpiece of the expertise that Keppel has been building up and serve as a launchpad for our expansion into other senior living markets in China and beyond. We aim to create a place where the seniors can lead active, fulfilling and purposeful lives on their own terms. We will deliver best-in-class personalised service and care, as well as introduce smart and green technologies to enhance the residents’ experience.”

The transaction is not expected to have any material impact on the earnings per share (EPS) and net tangible assets (NTA) per share of Keppel Corporation Limited for the current financial year.

Shares in Keppel Corporation closed 7 cents higher or 0.97% up at $7.29 on Dec 21.

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