Caredoc and Kyobo Realco are working together to convert idle real estate in the financial sector into senior housing and care facilities.
– Leveraging existing bank branch locations with high accessibility allows for the expansion of dense urban AIP models within local communities.
– Based on our capabilities in the senior housing sector, we will take charge of the specific transition and operation… We are currently in discussions with existing financial institutions to launch the project.
A privately-led project to transform defunct bank branches into community-focused senior housing is now fully operational.
Caredoc (CEO Jae-Byeong Park), a senior total care company, announced that it will pursue a joint project with real estate asset management company Kyobo Realco to reorganize real estate assets in the financial sector into senior housing.
With the recent wave of bank branch consolidation, the issue of post-use of idle real estate in the financial sector has been raised consistently. Caredoc and Kyobo Realco plan to launch a business model that strategically repurposes these idle properties in prime downtown locations into senior housing and care facilities. This conversion of idle commercial facilities into senior housing represents an unprecedented private initiative.
Bank branches are typically located in locations with easy access to public transportation and walking distances. This often translates to excellent accessibility to medical facilities, commercial establishments, and public institutions. Conversely, senior housing supply in urban areas remains limited despite rapidly increasing demand. This is due to the difficulty in securing land for new senior housing. The two companies concluded that idle real estate in the financial sector offers the optimal location for senior facilities that embody the "urban AIP (Continued Community Living)" model, leading them to pursue the project.
A key point of the project is the ability to densely expand senior-friendly facilities within the region, like a "capillary network." By repurposing commercial properties into necessary infrastructure rather than leaving them vacant, the project also offers the potential to realize public value in terms of urban regeneration and the welfare of local residents.
Caredoc and Kyobo Realco will each operate in separate business areas. Kyobo Realco will be responsible for identifying potential projects, gathering information, conducting initial sales reviews, providing investment advice and financing arrangements, and structuring the projects through collaboration with affiliates and external partners. Caredoc will play a practical role in converting Kyobo Realco's identified financial real estate into senior housing facilities. From proposing business models and operational concepts to conducting feasibility studies, obtaining permits and permits, designing, and providing operational advice, Caredoc will be responsible for ensuring the successful conversion and operation of senior housing.
Through this project, the two companies plan to establish a leading model for converting idle financial assets into urban senior housing, and furthermore, establish a standard model for converting idle commercial facilities into essential senior facilities for the local community. Discussions are currently underway with financial institutions holding idle assets to initiate the project, and the target assets and detailed project schedule will be sequentially announced in the future.
Caredoc is a leader in the domestic senior housing market, leveraging its solid experience in operating senior facilities. In addition to steadily enhancing its senior housing brand, including its Care Home series and nursing homes, Caredoc is also spearheading the expansion and standardization of senior housing operations, including the establishment of Care Operation, Korea's first specialized senior housing operator, in a joint venture with global investment firm Invesco. Building on these capabilities, Caredoc plans to continuously expand its senior facility and senior housing business, ranging from nursing homes to silver towns.
Caredoc CEO Jae-Byeong Park said, “We have launched this project to expand the housing options for seniors in urban areas in this hyper-aging society by converting bank branches located in key locations within the region into senior housing.” He added, “Through our collaboration with Kyobo Realco, we will introduce a new senior housing model that more organically connects the care infrastructure within key regions.”
Kyobo Realco CEO Jong-Tae Lee said, “Since idle real estate in the financial sector is an asset with high potential utilization value within the local community, this project will be a meaningful case in which new value is added to it.” He added, “Based on Caredoc’s expertise in senior housing and Kyobo Realco’s real estate asset management capabilities, we aim to create a model that can actually contribute to improving local community infrastructure in the future.”
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