Senior living firm Columbia PacificCommunites is being merged with Ranjan Pai-backed Kites Senior Care. The merger of KITES Senior Living and Columbia Pacific India arm would create one of the largest senior living firms in India.
“The merger is under process for the India business of Columbia and is unlikely to impact the existing joint ventures. Columbia Pacific Communities has a net worth of over Rs 25 crore as on FY22,” said a top industry source aware of the development.
The latter has undergone a leadership change, with Mohit Nirula resigning in July 2023 to join Oberoi Hotels. V Siva Kumar was appointed interim director at Columbia Pacific Communities and is now the CFO.
“Rajagopal G, chief executive officer and co-founder of KITES Senior Care will take over as the new CEO of the merged entity,” said one of the persons quoted above.
Late evening Tuesday, both entities confirmed the merger.
“The coming together of these two platforms in the senior care continuum underlines our commitment to enhancing the quality of life for the elderly,” Manipal Group’s Ranjan Pai, a major investor in KITES, said in a joint statement. “The elder care space is still evolving in our country, and this pooling of strengths will play a pivotal role in shaping the industry.”
Columbia Pacific aims to add about 2,000 units across India over the next two years, thereby doubling the senior/assisted living units and seniors under individual management and care, respectively.
“This strategic union is a powerful step forward in our ongoing commitment to provide exceptional senior living experiences in India,” Nate McLemore, Managing Director of Columbia Pacific Investments, said in the statement.
KITES Senior Care, a prominent provider of “out-of-hospital” geriatric care services, has completed its Series A funding round, securing an investment of Rs 45 crore from Ranjan Pai’s MEMG Family Office Fund in March 2024.
The total plan outlay for expansion and growth amounts to Rs 65 crore, with Ranjan Pai contributing Rs 45 crore and the remaining funds being sourced from various other contributors. Further, the Bengaluru-based company has outlined its intent to utilise the newly raised capital to augment its bed capacity to over 1,000 within the next six quarters, up from 340 as on March.
Columbia Pacific Communities, a subsidiary of the Seattle-based Columbia Pacific Group, has more than 40 years of experience in constructing, managing, and operating senior living communities globally, with a presence in the USA, China, Canada, the UK, Malaysia, and India.
In FY25, the company plans to invest over Rs 200 crore to expand its footprint in India by venturing into Pune, Hyderabad, Kottayam, and Kochi. Additionally, it intends to introduce senior living apartments for rent in India for the first time. CPC aims to add 800-1,000 senior living homes annually, with each project potentially generating revenue of Rs 150 crore-200 crore. Currently, Columbia Pacific Communities boasts 1750 operational homes in India.
The demand for senior living is increasing in urban areas due to higher income levels, rising life expectancy, changing lifestyles, the nuclearisation of families, and the need for stable post-retirement life. With the ageing population growing, the demand for various senior living services such as medical, insurance, and housing is also increasing.
The senior living market in India is expected to reach around $12 billion by 2030, up from its current size of $2-3 billion, with the rising median age and ageing population, according to Colliers.
According to Colliers, the current demand for senior housing in India is estimated to be around 18-20 lakh units, which is expected to grow significantly in the next five to six years. This ever-increasing demand presents an excellent opportunity for real estate developers and institutional investors.
