According to South Tyneside Council the apartments are not available to anyone on benefits. The apartments offer assisted living to older people needing additional support, adults with physical disabilities, people living with dementia, adults with learning difficulties and people with mental health or sensory support needs.
Surely, if this is the case then I would not have an issue with the building of these apartments. I believe its a joint venture with the council and Karbon Homes, so someone will be making money from this enterprise somewhere along the line.

Add on the mandatory meals cost plus the service charge and a single person on a one bed will be looking at just short of £500 a week.
But it is for people judged able to live independently with some support.
It cannot be compared to Nursing facilities where 24hr professional nurses are on site. The average cost of nursing facilities is circa £1500 a week.
It is as you say a private initiative and the investors expect, not unreasonably to make a profit.
For those who can afford it but need limited support it seems a worthwhile initiative.