(Yicai Global) Sept. 8 -- Evergrande Health Industry Group Ltd. [HK:0708] (Evergrande Health), a spin-off of real estate giant China Evergrande Group [HK:3333], has secured the usage rights of 11 land plots in Zhengzhou in Henan province for USD282.14 million (CNY1.83 billion).
Evergrande Health said it won the bid for the properties via an affiliate yesterday. They have a total area of 438,300 square meters and an above-ground construction area of 965,400 square meters. The land use rights for residential and commercial applications have terms of 70 years and 40 years, respectively, Evergrande Health said.
Evergrande Health said it will use the lots will for the construction of a health experiential center, a five-star health care hotel and headquarters for leading domestic and foreign pharmaceutical companies. Evergrande Health will build a demonstrative all-age community that features healthy lifestyle concepts such as elderly care, health care, medical, cosmetology, cultural and entertainment activities and sports.
The group said that it has long focused on community health management and elderly care services and that it has formed partnerships with several international medical institutions including the Brigham and Women's Hospital, an affiliate of Harvard Medical School, to provide relevant services for families across China.
The land will become part of Evergrande's international health city in Zhengzhou, which covers 117 square kilometers. The firm officially signed a project contract in March, and total investment is set to reach USD3.55 billion.