Greenland Group Launches Greenland Health & Wellness Industry Group with $3 Billion Investment Plan to Build 100 Senior-Focused Hotels

For months, the linkage between real estate and healthcare has seemingly never ceased.

Following Wanda’s announcement in August of the establishment of its Health Group, with plans to invest RMB 144 billion in deploying medical services through an asset-light model, China Resources Land signed a strategic cooperation agreement in September with Phoenix Medical, another subsidiary under the China Resources Group, to extensively expand into healthcare, elderly care, and the broader health industry. Last week, VCBeat (WeChat ID: vcbeat) also reported on Taithe Group’s strategic plan to invest RMB 50 billion over five years in the healthcare sector.

The real estate sector’s resolve to venture into healthcare appears to be intensifying. Yesterday (the 13th), the industry witnessed another major development. On October 13, Greenland Holdings officially released its strategic plan for the health and elderly care industry, while simultaneously unveiling the Greenland Health and Elderly Care Industry Group (hereinafter referred to as “Greenland Health and Elderly Care”).

In accordance with Greenland Health’s strategic plan for the health and wellness industry, Greenland Health will leverage the core strengths of its real estate business to focus on developing the medical care, elderly care, and health management sectors. Through innovations in business models, management, and technology, and anchored by big data-driven, full-lifecycle, comprehensive health management services, it will integrate the upstream and downstream segments of the health industry—including medical check-ups, sojourn-based elderly care, health insurance, and smart devices—to build a world-class ecosystem platform for the broader health industry. The company aims to establish a leading health brand in China, set a benchmark for service excellence in the health sector, and become a domestic leader in the health industry.

Hu Yingchun, Deputy General Manager of Greenland Health & Elderly Care, revealed in a media interview that the company will take full responsibility for building Greenland’s core “medical-care-wellness” health industry platform and participate in the development and operation of “medical-care-wellness” (healthcare, wellness, and elderly care) projects in the broader health sector.

The Group will prioritize the development of regional health and wellness demonstration zones, providing competitive health industry operations for Greenland’s characteristic towns and key area projects. As a result, the broader health industry has become one of the important engines driving the upgrading of Greenland’s core businesses.

Furthermore, leveraging Greenland Health & Wellness’s core strength in its global real estate portfolio, its flagship product “Kangyangju” (Health & Wellness Residence) will build a comprehensive, one-stop sojourn-based elderly care service platform. Centered on community engagement and featuring six thematic pillars—medical care, health management, elderly care, tourism, entertainment, and learning—the platform will integrate advanced information technologies such as the internet, artificial intelligence, and the Internet of Things (IoT), while adhering to industry-leading high-quality service standards.

Hu Yingchun believes that a favorable period for industry development has arrived. “During the 12th Five-Year Plan period, some smaller real estate enterprises entered the elderly care sector; however, due to the capital-intensive nature and long return cycles characteristic of this industry, coupled with unclear policies and immature development conditions, it did not attract significant investor interest. Now, both national strategies and local policies strongly encourage the development of the elderly care industry.”

In Greenland’s strategic planning for the health and wellness industry, the elderly care sector will be the first to be deployed. Greenland Health & Wellness plans to commence construction of 100 facilities within two years across China’s first-tier cities, provincial capitals and their surrounding areas, as well as tourist resort destinations. Within five years, it aims to establish a chain of 500 facilities both domestically and internationally, with a total investment reaching RMB 20 billion. Meanwhile, the company will promote the securitization of high-quality health and wellness assets.

Greenland Health & Wellness Valley Hotels initially launched in Shanghai and Wuhan, with properties in Sanya, Chengdu, Jinan, Zhengzhou, and other cities also scheduled to commence operations within 2018. The hotels primarily cater to middle-aged and elderly individuals aged 55 to 75 who remain physically healthy and energetic, and thus do not require “institutionalized” long-term care. Unlike other senior care institutions or real estate projects that focus on long-term residency and a stable customer base, Greenland Health & Wellness Valley Hotels aim to maintain a high turnover of guests, thereby ensuring a dynamic flow of clientele. To some extent, this concept aligns with the restaurant industry’s pursuit of high table turnover rates.

Hu Yingchun revealed that, in addition to cities within China, Greenland’s senior care hotels may expand overseas. This strategic layout leverages Greenland’s real estate projects, which have been cultivated for many years. Having established a long-standing presence in overseas real estate, Greenland enjoys inherent advantages in developing senior care hotels.

Furthermore, Greenland Group plans to achieve breakthroughs in the healthcare sector, including international hospitals and specialized hospitals. It has already partnered with professional institutions to conduct genetic research on centenarians, aiming to unravel the secrets of human longevity.

However, this major move had been foreshadowed; just two days ago, Liantou Group and Greenland Group signed an agreement to jointly promote the development of the Zishan Lake health and wellness industry.

Earlier, on August 9, the Greenland·Derentang 468 Health and Wellness Center, jointly established by Greenland Group’s Southwest Division and Sichuan Derentang (Holdings) Group, officially opened its doors to the public.

Greenland Derentang 468 Health and Wellness Center is positioned as a regional health and wellness service hub. Located at Greenland 468 Xijie, just outside the East Third Ring Road in Chengdu, the center officially opens today. It will provide comprehensive, one-stop, and customized health services for all age groups—from children to the elderly—to families within a 3–5 kilometer radius. Additionally, it will offer exclusive services tailored to Greenland property owners.

Furthermore, on August 4 this year, Dujiangyan City signed a cooperation agreement with Greenland Holdings Group Co., Ltd., officially bringing the Greenland International Health and Wellness Town project to Dujiangyan. Greenland Group plans to develop a characteristic health and wellness town in Zhongxing Town and Qingchengshan Town of Dujiangyan City, featuring an integrated model of “leisure tourism + wellness and mental cultivation + healthcare services + ecological blocks,” with a total planned investment of RMB 20 billion and a total planned construction area of approximately 7,700 mu.

On July 30 this year, Greenland Group invested in and constructed the Xueye Lake Health Tourism Town project in Shandong Province. The project was designated by the Laiwu Municipal Government of Shandong Province as a key provincial demonstration project for health and elderly care.

Judging from this series of moves, Greenland Group’s determination to make a mark in the health and elderly care sector is evident. From providing all-age, one-stop health and wellness services for communities to developing health-focused hotels and wellness towns, Greenland is actively working to comprehensively integrate high-quality resources across three key dimensions: “medical care,” “rehabilitation,” and “elderly care.”

Indeed, the development of the health and wellness industry has become one of Greenland Group’s key strategic business segments, a move that aligns with national strategic directions and actual societal needs. Nevertheless, from a purely commercial perspective, numerous patterns can still be discerned.

Unlike Evergrande and Wanda, which have focused on high-end hospitals, the health and elderly care industry falls under the concept of the post-hospital market. All services targeting the elderly population appear to share common characteristics: slow returns and high capital investment. In light of these traits, the development of institutions such as wellness hotels and senior living communities must align closely with the “care” aspect of “elderly care.” This necessitates life-convenience facilities and, unlike conventional hotels, the staffing of professional caregivers with nursing skills. These requirements inevitably entail high investment and a strong focus within the health and elderly care sector.

Real estate appears to have a natural affinity with the health and wellness sector. Primarily, it fulfills venue requirements; the advantages of real estate projects often facilitate services with high demands for space, such as elderly care and rehabilitation. This explains why, in Greenland’s strategic layout, priority is given to establishing health and wellness hotels in locations where it already has real estate projects. The key advantages here are twofold: attracting people and convenient land use, akin to self-sufficiency. Therefore, leveraging the strengths of real estate projects helps reduce upfront costs compared to renting or constructing separate facilities.

Recently, a series of major moves in the real estate sector have stirred up the already complex and ever-changing healthcare industry. Whether the influx of capital from real estate giants such as Evergrande, Wanda, Vanke, and Greenland will bring positive development to the healthcare and health industries, which are still undergoing continuous transformation, remains to be seen over time. After all, service is the cornerstone of healthcare. Whether for hospitals or the post-hospital market we focus on, the professionalism of medical services may well become the greatest test for these real estate developers.