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Greenland sets up unit to enter healthcare, leisure property sector

Greenland Holdings Corp. Ltd. established a subsidiary that will head its foray into the healthcare and leisure property sector, where it plans to develop and operate such assets, according to a report by Yicai.

The new unit has plans to invest 20 billion yuan over the course of two years to construct 100 hotels across first-tier Chinese cities and will securitize all the properties after they are delivered.

The hotels being developed in the first stage will be in Shanghai and Wuhan, while other Chinese cities of Sanya, Chengdu, Jinan and Zhengzhou would be locations for other hotels to be built in 2018.

Greenland Chairman and President Yu Liang Zhang told the news outlet that the company's efforts to enter the healthcare and leisure property market were an important step in its growth strategy and would help to boost its overall competitiveness as a company.

The Oct. 13 report added that the company's expansion into the sector is in line with the Healthy China 2030 initiative, which has been paving the way for rapid growth in real estate assets specializing in healthcare and leisure services. The initiative serves to encourage the integration of medical, healthcare and elder care services while pushing for the development of properties to house such holistic services.

As of Oct. 13, US$1 was equivalent to 6.59 Chinese yuan.