CSI Prop eyes Malaysian investors for UK-based care homes
KUALA LUMPUR: Cornerstone International Properties (CSI Prop), a Kuala Lumpur-based property investment consultancy, aims to attract more Malaysian investors to the untapped commercial homes segment in the United Kingdom.
CSI Prop director Virata Thaivasigamony said the UK’s ageing population contributed to demand for such care for the aged, with good investment growth potential.
“The UK is facing an ageing population, with one in four individuals aged 65 year by 2050. In addition, the care homes market is now facing a crisis due to the shortage of beds.
“With low supply and high demand, and at an average cost of £574 (RM3,100) per week at a care home facility, the returns are impressive. In comparison, Britain’s residential property rent averages £212 (RM1,150) per week,” he told StarBiz in an interview.
Citing statistics from the Alzheimer’s Research in the UK, Virata said 850,000 people lived with dementia in the UK today – a figure expected to balloon to two million by 2050.
He also said care-home investments can offer up to 8% net-yield per annum for up to 25 years, as well as provide an exit clause or contractual buyback.
“The undersupply of care homes has created opportunities for investors. With the UK’s ageing population, care homes investment could be the next student property investment,” he said, adding that commercial investment properties like care homes and student property were resilient to Brexit.
Virata said CSI Prop launched nearly 80 units of commercial care homes at the end of last year - all of which were snapped up by investors.
“We introduced care homes into our commercial property portfolio late last year and had good response among Malaysian investors. We will be launching our next round of units in March. We also hope to offer this opportunity to investors from East Malaysia,” he said.
CSI Prop has a large portfolio of investment properties in the UK and Australia.