Investing Capital gain in New Property where Rent would be receivable .

Hi All, A person want to sell his parents house on which capital gain would arise. He want to invest the Capital gain in new property where he will get rental income. Details of new property - its a flat build my old age home for senior citizens. He would be purchasing the flat and getting rent from the old age home for letting his flat to use by other citizens. After a few year he would be going to stay in the same flat. Can Investment in such flat be used as exemption under Sec 54?