“It took more than one man to change my name to Shanghai Lily,”Marlene Dietrich purrs Josef von Sternberg’s film 1932 adaptation Harry Hervey’s novel Shanghai Express. She certainly has her well-manicured talons sunk into more men than she can count in this exotic far-Eastern, chiaroscuro-cinematographic adventure. Clive Brook, her former husband and unshakeable British physician; Lawrence Grant, a missionary; Gustav von Seyffertitz, a drug smuggler; and Warner Oland are some of her other passengers on the Shanghai Express. In other China-themed films, Oland was often seen as Charlie Chan. This is a benevolent, heroic Chinese detective who lives in Honolulu and will be a movie role in the future.
While the train moves through war-torn China’s treacherous tunnels, Oland is revealed as the leader a rebel group who wants to make the passengers captive to ensure the release of his prisoners. Boule-de Suif fashion Dietrich plays a notorious criminal. “Chinese coaster”She has kept her sexual distance throughout the journey, but she now gives herself over to Oland to save Brook, who is truly the one she loves. Josef von Sternberg directs at his best (check out those long, lingering dissolves!)This is the final version. Shanghai ExpressIt is made up of 80% design and 20% substance.
Get Tickets ….
This article focuses on China’s top 3 most notable geriatric development. This article will be long, but it contains important information for seniors living in China. The projects listed here have all been available for at most two years. In one instance, it was almost five years. They are referred to as CCRCs (continuing care retirement community) since that is exactly what they were intended to become and, in part, what developers have achieved…or better still, what they continue to struggle to achieve. The foreign aid provided limited assistance to one of the developments, while the other did not. One of these developments clearly received limited foreign aid and has therefore the most comprehensive aged-care program available in China. Each has its strengths and weaknesses, but they all chugging along. The result is mixed and it can seem that senior living in China may be a misguided idea. However, it’s early days and the train isn’t yet out of the station.
It is important to keep in mind the following rules for those who want to start a senior care company in China: First, China senior life is the same as Western geriatrics in 1950, but growing rapidly; second, it is not a good idea to compare Chongqing senior living to Santa Barbara because the Chongqing buyers don’t have the option; third, the better one is at the acuity ladder, the more leverage you can get…which leads to greater success. And finally, do not quit coach.
A final observation before this train leaves. Below is a moderately critical assessment that borders on subjective evaluation. At times it may also include some literary humor. To avoid being detained at Beijing Nan Zhan by the People’s Senior Living Police, I request your kind consideration. I do not intend to condemn, malign, or make a mockery of any CCRC mentioned here, or China’s potential senior living. Contrary to popular belief, I do not believe I am an apostate. If these three communities show what Chinese seniors can achieve, the next decade of China geriatric healthcare will be exceptional.
Finally, the whistle sounds. A CCRC is a residential campus that consists of independent living apartments for seniors, assisted living units and skilled nursing for elderly or frail adults who require frequent care or medical attention. A variety of facilities such as exercise equipment, cultural amenities and commercial support services are available to provide basic necessities like hairdressing, laundry/dry cleaning, variety shop, etc.
First stop, General’s Garden…..General’s Garden
Two years ago I was thinking, “When I visited General’s Garden, it was almost two years ago. “This is it….modern senior living has indeed arrived in China”. After my fourth visit and some very thorough investigation and analysis, however, I started to notice cracks in hardware and software. In a way, it was like the General’s Garden locomotive ran out of steam.
General’s Garden first opened to the general public in 2009 The garden is found in Beijing’s northeast quadrant (off the 4th Ring Road), near the Museum of Film and Beijing Capital International Airport. This land belonged to the Ministry of Transport. Its perimeter serves as a track test for China’s high speed railway. General’s Garden can be called a CCRC since it loosely embodies the definition of a CCRC. General’s Garden features 51 townhouses style villas as well as 160 apartments with independent living and assisted living, plus 280 skilled nurses units. It is all located within a gated community. The facility offers three-hole golf (plus driving range), an uncommonly large, unfinished hot-spring clubhouse of 17,000m2, 160 rooms, and a clinic that specializes in traditional Chinese medicine.
What happened then? As of January 2012 only 14 villas had been sold. And less than 10 golf club members purchased their memberships. The opening of this course was 2 years ago. It is too complex to go into detail on the amenity membership program. Prices for membership at a golf club are determined according to the number of balls used. For villas ranging in area from 700-800 m2, the price range is RMB 45 million to RMB 55 millions for unfinished space. The IL/AL units are RMB 1.5million, while the villas cost RMB 1,5 million. Additional services can be arranged on an “as needed” basis. The skilled nursing units and IL/AL apartments are occupied at 75% to 80%. However, there may be a variety of factors that have led to the slow performance of these villas. General’s Garden’s best feature is its aged-care program. It was established by an Australian group, and it did a fantastic job. This section was managed by an Australian until recently. He has great insight and experience in understanding the needs of Chinese senior citizens. This man is a true master in China senior care. We have been able to access General’s Garden’s Business Plan and we can now tabulate a lot of the rental and sales data that they provide to us for sharing with our clients.
And unlike the Little Engine That Could.”I think I can, I think I can…“() The General’s Garden villas were never able to make it up the hill. It is believed that this happens because of:
1) The land upon which the facility will be built is called “collective land”The buyer does not receive fee title, it only has a long-term rental agreement (approximately 50 year for a villa or IL/AL). Potential buyers are presented with an attractive opportunity to purchase a depreciating, extremely expensive asset that cannot be hypothecated under Chinese law.
2) General’s Garden didn’t seem to have any marketing plans or buyer outreach programs other than following the owner’s political connections for unit sales.
The third, and perhaps most important aspect of the facility is its capitalization. Its financial strategy was at best a mystery. Ad-hoc. The warning signs began to sound as subtle as the piercing whistle of a diesel engine at 4 am. Contractors stopped receiving payment and construction was stopped on remaining units. There was also a significant increase in deferred maintenance. A hostile takeover took place and most of the senior management stopped getting paychecks.
The IL/AL units, however, are a relative success. Although ownership (which is the transfer of title) of such units is similar to that of a villa they cost less than a villa. Interesting to see that older adults have started to buy these units to allow their children to reside in …..however weird. Despite the fact that it is a CCRC unit, young people can still live there. It is likely that this is a reflection of the facility’s cost and its attraction, or, even more likely, because the parents are planning to move in the future.
General’s Garden’s newly appointed management fired twelve senior managers, many of them experienced, in January 2012. They were reeling from the magnitude of the hostile acquisition. General’s Garden failed to understand the market and didn’t find a buyer. They also never properly projected capital costs against unit absorption to determine a breakeven point. This is a fatal mistake.
To be fair, however, the review of General’s Garden should praise the original management. Their fundamental idea of the CCRC was sound. Software has jumped the rails. He/they, and the other members of his close circle, are highly talented individuals who have the potential to positively affect the senior living market in China. I met him and others. General’s Garden is a testimony to his early successes. Were it not for the hostile takeover of General’s Garden in 2008, General’s Garden might have continued to thrive under his leadership. General’s Garden is without vision and perspective, which means it will face many crucial switches on the tracks ahead.
Recently, a fellow writer wrote a piece about this facility. He used a song I love to illustrate the bridge that General’s Garden crosses over turbulent waters. And more importantly, it’s chaotic history. His story is spot on and I admire his thoughtfulness. He has taken an measured approach to the analysis of this facility. It is always good to de-accelerate and move forward with less urgency in China.
This is the point at which I’ll stop using rock’n’roll metaphors. Instead, I’ll choose a solemn, more formal reference to illustrate this facility’s story. General’s Garden is now in decline and we might be able to call it General’s Garden. “The Prodigal CCRC”A parable about squandered opportunities; General’s Garden can, and will, atone for marketing and financial mistakes and get its way back.
Yanda ….next Stop ……Yanda
It is truly a sight to see. The facility’s full name is Yanda Golden Age Health Nursing Center. However, Yanda is often used. Yanda is reached by entering through a huge ceremonial gate. One enters into Yanda and finds a large, square-shaped plaza that can hold 500 tractor trailers. After you have parked your car in Yanda, it is quite creepy to walk around Yanda. Inception,…….beautiful. Large, empty, and falling.
Yanda’s primary problem is the location. It’s located in Beijing’s adjacent Hebei province and is a long drive away from Chaoyang District. Yanda’s second problem is its overstuffing. Many details about what happened at Yanda are unclear. Even basic information such as the number of rooms and how many beds is available, it’s not clear. Yanda has 1,200 units, although it seems like there is more. A 3,000-bed hospital is located at Yanda, as well as a 200-bed facility for geriatric care. However, the management claims it’s quite busy. But there isn’t much parking and not one ambulance came in my three hour tour. (I was here around noon). My lying eyes won’t fool me. I didn’t see one patient in the nursing home. You’re not done yet. There is a hotel with 250+ rooms and four religious places. As if all that wasn’t enough, the owners built a 30-story building to house healthcare workers, which will hopefully soon arrive. Wow! Wow!
This project is truly statuesque in every sense, and should be renamed The “Colossus of Hebei”Yanda can be described as “colossal”, but that is a very limited description. “stalled”This is a good example of what’s possible, but it lacks visuals. “onomatopoeia” My imagination runs wild when I’m faced with something mysterious and uncomprehensible. Yanda incited me to write the last few lines of Shelley’s famous poem Ozymandias.
“….My name is Yanda, King of CCRC’s: Look on my campus, ye mighty, and despair! Few residents remain. Round the decay of that colossal wreck, budget-less and bare, the congested Chinese conurbation stretches far away”
Let’s be serious: Yanda only occupies 20% of its space, but it can easily go lower. The tour guide tells us that Yanda is only 20% occupied. I accept this as fact. However, lunch was my favourite time to go to a facility. It reveals so much and there wasn’t too many people.
We know this about Yanda. Yanda, unlike General’s Garden is a rental program. The majority of occupants rent units for a one-year period, although management offers 2 or 3 year options. Assistive living and independent units with 1 and 2 bedrooms rent at RMB 5,600 to RMB 9.600 per month. There are also services that can be chosen from a list. The cost of a bed/unit in the nursing facility ranges from RMB 13.600 to RMB 16.800 per month depending on its size and degree of care. The pricing is not perfect. A sponsor will offer a sinking fund, where they pay you a return of 6% on the amount of your monthly rent if enough money is deposited. However, this is open to all but the most privileged customers. After showing me and my staff the pricing, she also gave us a more detailed explanation of it. But, because we were very lucky and today’s visit was auspicious, management instructed her to provide a VIP discount of 40% for IL/AL units. And a massive 60% for nursing units. The offer came back days later with additional phone calls verifying information. It’s not surprising that Ok ….. was offered this offer.
Yanda was founded in 2010, and it quickly gained momentum before being shut down. It is obvious that the ROI must be in decline by now, and someone will likely take a loss moving forward. This isn’t a terrible project. In fact, I liked the design. “ok”China CCRC Standards; however, someone has to manage the marketing and drive the absorption. Then the leasing scheme can be simplified before it falls apart. In order to address Yanda’s true weakness, location is your only hope. You won’t believe this, but there are still some land for the phase II …. someday.
Cherish Yearn, last stop…….Everyone off!
The operations of this facility are just as fascinating as their name. Cherish Yearn is located in Pudong’s far-flung corner, and was once a duck farm. It came on the market five years ago. This senior living facility was a pioneer in China and the organization, design and atmosphere reflect this. Cherish Yearn was my first visit in 2010. I found it to be a complete disaster. The desert-like landscaping and the staining stucco walls on buildings made it look like a ghost town. It also had very few inhabitants, little energy, and no ambience.
Cherish Yearn, which was finished in 2006, saw the first residents move in to it in 2007. The property has struggled to find occupancy over the years. However, when I went back in 2012 for my second visit I was delighted. A new marketing campaign was put in place over the past 2 years to increase census from 20% down to nearly 80%. After my tour, I am convinced that this is the truth. Geriatric calligraphers are busy in the activity rooms, while the Central Committee is populated by bespectacled Mandarins who gaze over their libraries every day. Even the computers rooms are full with older Chinese keyboard-smokers. Cherish yearn has so much activity, its resurrection is a worthy name. “Lazarus of Pudong”…so, there’s still hope for both The Prodigal CCRC & the Colossus of Hebei.
Cherish Yearn has a large facility, just like the sister facilities. There are approximately 800+ units available in fifteen different buildings. There are 600 independent living units, and a 300-bed nursing facility. Although the independent units report a 80% occupancy, it’s not clear how many people live in the nursing home. Although access to the top floors is restricted, the first floor does have some patient rooms and has no activity.
Cherish Yearn has a business model that is based on a membership program with an upfront payment and annual rentals, plus charges for usage of the clubhouse. The basic plan is Plan A, which grants title to an occupant and charges an entrance fee of RMB 890,000. The resident can select from three sizes of units once he or she is admitted: large units (108m2 to 1150ft2); medium units (70m2 and 740ft2); or small units (58m2 to 625ft2) which each have an annual charge. A resident may either sell the unit at a later date, or make an offer to the sponsor for the sponsor to purchase it again. This will be done for 90 percent of the market price or entry fee. The 15-year right to use Plan B is granted for an entry fee starting at RMB 880,000 for large units. Smaller units will have lower entry fees. There’s also a fixed annual fee of RMB 29,800 for all types of units. Plan B’s monthly entry fee, which is calculated on a declining basis over the period of 15 years, will be refunded.
Plan A is most preferred by children buying a unit to give to their parents, while Plan B appears to be more popular for those who want to buy a home for themselves. Plan B customers are far more common than Plan A. Clients can also access a tabular analysis on Cherish Yearn’s fees.
Cherish Yearn’s ability to provide sub-acute services and its compliance with the original land grant rights was questioned in the past. While the issue may now be settled, at least one media article has been published about the facility. “land rights”I was able to confirm the authenticity of this issue through a trusted source with good connections. There are still rumors about the facility’s legality in some corners. But, at the end, it is clear that these rumours may be gossip due to Cherish Yearn’s incredible success. There are many truths in China.
As such, with submissive and sincere genuflection, my faithful congratulations go out to the Lazarus from Pudong. Despite it all, I consider it the most successful CCRC Project in China right now. The program is truly unique and a Chinese success story. sui generis Modell.
Terminus
Shanghai Lilly claims that it took her a lot of effort and time to build her reputation. This is true for many things in China. Virtues like patience and perseverance are crucial. It will not take just a few CCRC attempts to make the Chinese model perfect. CCRCs are complicated undertakings. Even in West Europe, even those with all the data and experience can make errors and fail to build correct models. The Chinese CCRC’s are a slow-moving work in the waiting. Although I expect near-term success for smaller facilities along China’s east coast by local and foreign developers, it will not stop the Chinese entrepreneur trying to pull the weight of an enormous senior living project. Although these massive CCRCs could be the path the industry eventually takes, if I were an owner/operator or investor, my focus would still remain on the tunnel’s end: smaller, more manageable projects with higher acuity. Let’s just call them the “The Light at the End of the Tunnel”. “Shanghai geriatric express”
Final thoughts: I think I have gone a lot further with this article’s topic, which is Chinese movies or films that have a China theme. In fact, it has been extended beyond what I could have imagined. This was the longest posting I’ve ever done. I did heap it on you the reader with endless literary metaphors and a mildly humorous allegory. I don’t feel any guilt for that. While I still wonder about Jiang’s whereabouts, it was necessary to return to the details of senior living in China. This is the basis of the post. Don’t worry, the human side will still be covered soon. There are two posts left of the same ilk that I will post before the summer. Following a brief break I’ll be back in September with something fresh and refreshing. However, if anyone has any questions or suggestions, please let me know.