Wanda announces RMB15bn investment in international hospitals

Wanda Group (“Wanda”) and International Hospitals Group (“IHG”) announced at a signing ceremony that Wanda will invest RMB15 billion to build three comprehensive international hospitals in Shanghai, Chengdu and Qingdao. The hospitals will be managed by IHG under its own brand, whereas in Chinese they will assume the name IHG Wanda International Hospital. This investment marks the largest of its kind in the healthcare sector for a Chinese company and is to be the first hospital project managed and operated by IHG in China. 

Founded in 1978, IHG has successfully completed over 450 healthcare projects in over 50 countries for private and public sector clients including 22 national Governments, the United Nations, the World Bank and the International Finance Corporation.

The three comprehensive hospitals will be built in line with the highest international standards. Properties include the 1000-bed IHG Wanda International Hospital in Shanghai, with a proposed investment of RMB8 billion; the 500-bed IHG Wanda International Hospital in Chengdu, with a proposed investment of RMB5 billion; and the 200-bed IHG Wanda International Hospital in Qingdao, with a proposed investment of RMB 2 billion. The properties will be developed in accordance with the highest international design and construction standards, and IHG shall ensure that the three hospitals obtain JCI (Joint Commission on Accreditation of Healthcare Organizations) or equivalent international accreditations.

IHG Wanda International Hospital in Qingdao will be located within the Qingdao Oriental Movie Metropolis, a development that is currently under construction and is scheduled to open in August 2018. IHG Wanda International Hospital in Chengdu will be located in the Qinhuangsi Central Business District, in the city's Tianfu New District, and will occupy an area of 500 mu (around 333,000 square meters). Construction is scheduled to begin in the first quarter of 2016. IHG Wanda International Hospital in Shanghai is also scheduled to undergo construction in the first quarter of 2016. IHG shall appoint a foreign specialist to act as directors of each hospital and will select top-level doctors and medical staff to ensure that the quality of healthcare and operations conform to top international hospital standards. 

Chester King, Asia Chairman of IHG, said of the announcement, “Wanda is a beloved company in China. By partnering with Wanda, IHG will be able to bring its expertise into the booming Chinese healthcare market. The collaboration between Wanda and IHG will continue to contribute to commercial relations between China and the UK.”

Wang Jianlin, Chairman of Wanda Group, commented on the partnership. “Bringing a top level international hospital brand to the Chinese market is a new innovation in China. It not only satisfies the growing healthcare needs of the country’s affluent population, but also helps the cities in which these projects are located to elevate their healthcare standards to international levels, and to serve as role models for the development of premium healthcare in China.”