China’s economy has grown rapidly due to economic reforms and opening-up of friendly foreign investment policy: people’s living standards and healthcare conditions have improved; the average life span has increased; and consequently the absolute number and relative proportion of the elderly has also increased. According to recent surveys and studies, by 2020, the proportion of the elderly in China over 60 and people over 65 years of age will be 16.23% and 11.30%, respectively; by 2030, 22.34% and 15.21%, respectively, and by 2040, 25% and 20%, respectively. By 2030, China will enter the super aging society. By 2050, the population of elderly over 60 years old will reach 450,000,000, accounting for 31% of the total population.
China’s retirement agencies can currently only hold 0.8% of the elderly population, which is less than the 3% ratio in the developed countries. There is a lack of market supply.
The Gulfcare Xuyi Project is an advanced retirement home model combining institutional healthcare and community integrated services, with the aim of providing high-end rehabilitation, healthcare and nursing, retirement tourism, nursing exchange programs and R&D of medical technologies.
The GULFCARE Xuyi Project land is located in the second and third-level protection area of National Forest Park, Tieshan Temple, Xuyi County, Huai’an City, Jiangsu Province, next to the town of Tianquan Lake.
GIMEG Hong Kong has entered into a binding agreement with the Government of Xuyi County, Jiangsu Province to be allocated the use of the GULFCARE Xuyi Project land for a minimum period of 50 years in accordance with China Urban Real Estate Development Policy on land allocation. Parts of the land are to be subsidized and parts to be allocated against a 50 year preferential lease fee. According to China’s foreign investment policy, projects such as the GULFCARE retirement homes are categorized as encouraged investment projects and shall have preferential policies on taxation and subsidies. The final decision on subsidized and allocated land pricing will be made after the completion of a third party evaluation which will be disclosed in future press releases. The GULFCARE Xuyi Project approval documentation has already been obtained from the Government of China.