New York-based Fortress Investment plans to raise $1 billion for a China fund that would invest in housing for the elderly, according to a report from the Financial Times.
FT, citing Fortress co-founder Wesley Edens, says the U.S. hedge fund and buy-out firm wants to team with a Chinese partner for the venture. Chinese authorities are encouraging private companies to help provide housing for its elderly.
Although the opportunity is there, given China’s rising proportion old people (155 million of China’s 1.3 billion people are over 65 and the number is expected to reach 260 million by 2020), entering the market is not easy.
“It is complicated and difficult to get it right,” said Edens, who went to China in January to meet government officials and corporate executives. The paper says Fortress is in talks with potential partners.
Fortress operates the largest independent living facilities for seniors in the United States and Canada.