LIC Housing Finance to set up more 'senior citizen villages'

Kochi, Aug 3 (UNI) LIC Housing Finance Ltd, which recently commissioned its first exclusive community living centre for senior citizens in Bangalore, is discussing similar projects with several State Governments, its Chief Executive S K Mitter said today.

Addressing a press conference here, he said LICHFL had floated a 100 per cent subsidiary 'LICHFL Care Homes Ltd' with an authorised capital of Rs 25 crore to set up 'Assisted Living Community Centres' for senior citizens.

The first complex under this project, spread over nearly ten acres, had come up in Bangalore with 98 independent units. The houses, spread over 400 sqft to 800 sqft, cost between Rs five lakh and Rs nine lakh.

The next project for senior citizens would start at Bhubaneshwar in Orissa next month and would take about 24 months to complete.

LICHFL Care Homes Ltd was talking with the Governments of Delhi, Maharashtra and Uttaranchal to buy Government land for such projects. The company would like to set up a similar centre in Kerala also, Mr Mitter said.

Besides self-contained residential units, the centres would provide services like food, laundry and housekeeping, he said.

Talking of other new initiatives of the LICHFL, Mr Mitter said the company was planning to launch a 'reverse mortgage' product shortly. It was also considering floating a 'realty fund' to finance construction of residential complexes, IT parks and shopping malls.

Despite a slight lull in the real estate sector due to rising interest rates, LICHFL had closed the first quarter of 2007-08 with a 59 per cent increase in net interest income, compared to Q1 of 2006-07, from Rs 59 crore to Rs 66 crore.

There was a 36 per cent increase in total income from Rs 341 crore to Rs 464 crore. The company's net profit during the quarter had risen by 25 per cent from Rs 37.46 crore to Rs 46.70 crore, he said.

The rising interest rates had not caused any serious NPA problems for the company, he added.

UNI