BEIJING, June 7 -- Germany's largest social service provider, Augustinum Group, announced yesterday it will invest 940 million yuan (US$117 million) to build a high-end retirement community in Shanghai for wealthy local families and returned overseas Chinese.

    The community will be set up inside the Shanghai International Medical Zone in Nanhui District and should be complete by 2010, company officials said.

    The first phase of the project, which should be completed in about two years time, will include 500 apartments. The second phase will include 750 apartments ranging from 30 to 100 square meters in size, according to Zhou Gang, vice general manager of Augustinum's local business partner, Shanghai Longjun Real Estate.

    Augustinum Group President Markus Ruckert said the project will create a natural leisure space for seniors, and will motivate its residents to take part in group events.

    Augustinum was established in 1960, as a social service company, and now accommodates 7,200 seniors in Germany.

    While the company hasn't decided on prices for the apartments, its rooms in Germany rent for 53 euros (US$68) a square meter, plus extra security charges. Rents include services such as meals, weekly apartment cleaning, access to a swimming pool, and various cultural events. Other services, such as medical care, and laundry are also offered.

    The community is Shanghai will be based on a similar model.

    "We will have a more detailed price plan for Shanghai by September," said Ruckert. "We need to adapt to the local culture, and will make adjustments accordingly."

    Sun Pengbiao, a spokesman for the Shanghai Research Center on Aging, said the city needs more homes for seniors.

    "A large group of families in Shanghai will be able to afford its living costs, even if the prices are high," said Sun.

    Construction has already begun on Shanghai Qinheyuan Seniors home, a retirement community aimed at the same customer group.

    Shanghai is home to about 2.6 million people over the age of 60, and 474 senior homes with a combined 49,529 beds. The number of beds only covers 1.9 percent of the city's elderly population.

    (Source: Shanghai Daily)