Česká spořitelna is planning to invest up to CZK 11 billion (€450 million) in senior care properties in the Czech Republic, targeting the creation of around 5,000 new care beds.
The investment will be carried out through Dostupné bydlení České spořitelny, the bank's subsidiary originally established to invest in affordable rental housing. The company is now expanding its activities into senior care infrastructure, Hospodářské noviny reports.
According to Marek Blaha, CEO of Dostupné bydlení České spořitelny, an initial CZK 2.5 billion has been allocated for approximately 1,000 beds, with the first three projects expected to be presented within six months. Over the next five years, the company aims to mobilise up to CZK 11 billion for the development of 5,000 beds.
Hospodářské noviny reports that the first three projects are being selected in Prague and the Moravian-Silesian and Liberec regions. The investments could include both the acquisition of existing properties and new developments.
The initiative comes amid a growing shortage of long-term care capacity in the Czech Republic. According to figures presented by Česká spořitelna, the country currently lacks more than 15,000 long-term care beds, while the shortfall could increase to around 35,000 by 2035. An estimated CZK 70 billion of investment would be required to provide the additional infrastructure.
Česká spořitelna intends to act primarily as an institutional investor in the properties, allowing care providers to focus on operating the facilities. The company also plans to work with municipalities, construction companies and operators, while developing an independent care quality certification system together with the Association of Social Services Providers of the Czech Republic.
The strategy builds on the bank's existing affordable housing programme. According to Hospodářské noviny, Česká spořitelna has invested around CZK 4 billion in the segment so far, with approximately 700 completed and fully occupied apartments and another 300 units under construction.
