Dalian Wanda Group Co. Ltd. is planning to develop a 12 billion yuan theme park in Yan'an, China, the South China Morning Post reported.

Construction of the planned Yan'an Wanda City development is expected to begin in the first quarter of 2019, with completion slated for the first half of 2021. It will feature shopping malls, indoor parks, theaters and hotels, according to the publication, citing the Chinese conglomerate.

Dalian Wanda intends to capitalize on the so-called red tourism in the country through the 1.26-square-kilometer project, the SCMP added. A tourism project in China's Lanzhou city with an investment value of 20 billion yuan is also in the pipeline of the company.

In an effort to reduce its debt, Dalian Wanda sold its remaining stakes in its tourism projects to a Sunac China Holdings Ltd. subsidiary for 6.28 billion yuan. Amid its debt reduction strategy, the Chinese group declined to reveal how it plans to fund the multibillion-dollar project, the Dec. 14 report added.

As of Dec. 14, US$1 was equivalent to 6.91 Chinese yuan.