Property Development Company to Build Healthcare Park in China

China’s Dalian Wanda Group Co. is set to build a healthcare park in the city of Chengdu.

After rumors of a healthcare project circulated at the World Economic Forum in January 2017, China’s Dalian Wanda Group Co., pioneered by billionaire Wang Jianlin, officially announced an agreement with Chengdu’s city government to build a healthcare “park.” The project, worth US$10 billion (70 billion yuan), will consist of two general hospitals, eight specialized hospitals and thirty healthcare firms. The healthcare park aligns with Dalian Wanda’s previous ventures and builds off its expertise in development, which typically invests in shopping malls, movie theaters and theme parks. This is Dalian Wanda’s second healthcare project: The company established a partnership with International Hospitals Group in 2016 to build three hospitals with a US$2.2 billion (15 billion yuan) initial investment. Wang has previously commented on the growing market for private healthcare in the country, noting that legislation changes coupled with Dalian Wanda’s extensive network of commercial properties make investing in healthcare advantageous. The number of private hospitals, for instance, is steadily increasing in China since overcrowded and overburdened government hospitals can’t meet the high demand for care from the growing middle class and aging population. The market for private healthcare is reflective of the recent boom in private hospitals in China, and projected to be worth US$90 billion by 2019. —AA

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