2008 Annual Report - The Carlyle Group

27.5 millionIn 2007, there were approximately27.5 million Japanese citizensages 65 years or older. By 2050,the number of elderly citizens isprojected to increase to 38.6 million,comprising nearly 40% of thetotal population.Bon Sejour Grand, Tokyo, JapanJapan is expected to have the second-highest proportion ofsenior citizens in the world by 2050. At the same time, migrationpatterns in Japan show that families are moving backinto central city areas, creating a need for senior housing inurban neighborhoods.Seeing these trends as compelling reasons to begin investingin the senior housing sector in Japan, Carlyle made its first acquisitionof a senior housing property in 2007 in strategic partnershipwith Tokio Marine Nichido Samuel. In January 2008, Carlyleexpanded its senior housing portfolio by purchasing the land andbuildings of the Bon Sejour Grand facilities, comprising a totalof 346 units at four residences. Nomura Healthcare Company, aspecialized manager of healthcare assets, co-manages the properties.In November 2008, an additional senior housing propertywas acquired. All six properties are located in central Tokyo.These acquisitions reflect Carlyle’s investment strategy offocusing on less crowded sectors and forming strategic allianceswith operators in each sector.2008 The Carlyle Group 53