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Published: Thursday April 18, 2013 MYT 12:00:00 AM

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Updated: Friday April 26, 2013 MYT 12:09:01 AM

Growing demand for retirement

resorts

Checks with industry players revealed that the developers

were studying various models in terms of project layouts as
well as the different financing models on how these units
could be sold or leased.
Private developer Gracious Homes Sdn Bhd is building a
55.85ha retirement resort called The Green Leaf Retirement
Resort Community in Sepang, Selangor.
The first phase of the resort is expected to include service
suites, retirement residences, a medical centre and an
activity club.
There will be three phases. The resort is designed to be an
activity-based destination with amenities and facilities
including spas, malls and cafes, according to its website.
It is designed for those who want to enjoy life and have the
assurance that their security and well-being is well-looked
after, it said.
When contacted, a company spokesperson said the housing
units within the resort were expected to cost between RM700
and RM1,000 per sq ft, but this had not been finalised. We
have not yet launched the units, hence, the construction
dates have not been set and sales have not started, he
said.
Depending on market conditions, the launch is expected to
be in the third quarter of the year.
He said the ownership structure would be based on regular
real-estate statutory requirements, with the additional
availability of care and service options.

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YVONNE TAN, LIZ LEE AND NG BEI SHAN

PETALING JAYA: A number of professional developers are

mulling venturing into the field of retirement and assistedliving style projects, aimed at the elderly an untapped market
in Malaysia.

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Growing demand for retirement resorts - Business News | The Star Online

We personally believe that demand would grow steadily,

given the growing ageing population and the obvious
shortage in supply of retirement options, he added.
IJM Land Bhd, meanwhile, is also considering a similar
business.
Group managing director and chief executive officer Datuk
Soam Heng Choon said he saw opportunities in building
retirement communities as people become more receptive to
this concept.
We are now ready to look at the retirement community
concept and may consider incorporating that into some of
our townships at a later stage, he said.
He said the idea was to create a community, and relevant
services would be provided to ensure conduciveness for the
residents.
The company was studying the trends and finding out more
about the demand for retirement communities, he reiterated,
adding that the concept, although new in Malaysia, had been
implemented in developed countries.

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There are four different stages in the needs of home buyers.

People start off by buying a small house as first-time home
buyers. When people get married and establish a family,
they need bigger houses. When they prosper over time,
they aspire to own even better homes like a bungalow or a
high-end niche condominium.
The last stage is when ageing parents face the empty nest
scenario, he said.

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He explained an old couple might then want to downsize

their house to a manageable unit.
Therein lies the potential for retirement communities.
The developer is mulling a possible sell on lease concept,
where the beneficiaries of the retirement unit owners would
have to sell the units back to the developer when the owners
pass away.
The proceeds would then be given to their beneficiaries,
after which the developer would sell the unit to other retirees,
he said.
Chan Wei Keat, who helps heads private property
development firm Midvest Asia Sdn Bhd, is also hoping to
jump on the bandwagon.
Chan, who is the son of Wah Seong Corp Bhd group
managing director and chief executive officer Chan Cheu
Leong, said Midvest was looking to partner an Australian
company for this purpose to tap into its knowledge and skills.
Its retirement community is proposed to be built on 10.93ha
near Bukit Jalil, Kuala Lumpur, and would comprise semidetached units and later, condominiums.

http://www.thestar.com.my/Business/Business-News/2013/04/18/Growing-demand-for... 30/7/2013

Growing demand for retirement resorts - Business News | The Star Online

Page 3 of 3

We want to get rid of the usual stigma associated with

retirement houses. This would be a community place where
people would feel good to live in, he said.
He planned to launch the first two phases of the project in
the next one year.
Another Malaysian company that has experience with
retirement home development is Mulpha International Bhd. It
is the single largest shareholder in FKP Property Group,
Australia's leading property investment company.
The Australian-listed FKP is also the largest private sector
owner-operator of retirement villages in Australia and New
Zealand.
Under the Aveo brand, FKP is the operator and owner of 75
retirement villages around Australia, that have over 12,000
residents, according to the company's 2012 annual report.

TAGS / KEYWORDS:
News, Business, Business, retire, green leaf, community

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http://www.thestar.com.my/Business/Business-News/2013/04/18/Growing-demand-for... 30/7/2013