LIC Housing Finance (LICHFL) is floating a separate arm for setting up retirement community homes on a commercially viable basis. The housing finance company has identified an initial investment of Rs 25 crore. The 100 per cent subsidiary, which is yet to be christened, will have a seed capital of not exceeding Rs 10 crore.
The housing finance outfit is in talks with well-established institutions in the area of medical services and hospitality for strategic alliances. It has already identified properties on the outskirts of Mumbai and Pune for outright purchase or long-term lease of 30 to 40 years, where the "assisted living community centres" will be set up in six months.
Kranti Sinha, LICHFL director and chief executive officer, and visionary behind the entire project said that the company "will start with Mumbai and Pune" where it "see a greater requirement". Even in the case of Chennai, there is a huge demand as children in many families are going overseas for better job opportunities, leaving behind their aged parents, he added.
With no plans to do any charity, LICHFL will take an upfront no-interest fixed deposit from individuals, to subsidise the costs as well as a monthly or quarterly payment. LICHFL will also encourage the sale of Life Insurance Corporation's pension schemes as a means to pay for the quarterly amounts.
The housing finance outfit is eyeing the educated middle class who have the ability to pay and would not be looking for an ownership facility.
"Basically the concept will address the loneliness and anti-social menace the old people face. We are looking at individuals in the age group of 60 and above," said Sinha. It is still debating on decreasing the cut-off age to 55 in view of the increasing number of corporates introducing voluntary retirement schemes (VRS), he said.
The housing units, based on the community system prevailing in the US, would consist of 50 to 60 individuals, who would share common facilities -- medical, food, and security. "There would, however, be a gradation in terms of accommodation provided as we propose to offer houses or self-contained flats of 450 square feet," said Sinha.
