In December 2018, OUELH entered into a non-binding letter of intent ("LOI") with China Merchants Shekou Industrial Zone Holdings Co., Ltd. ("CMSK"), to jointly develop, operate and manage a high-end international hospital in Prince Bay, Shekou, Shenzhen, the People's Republic of China (the "Proposed Prince Bay Hospital Project").
The Proposed Prince Bay Hospital Project is expected to have more than 200 beds serving the local community and is set to benefit from the growth of the medical tourism industry in the Guangdong-Hong Kong-Macao Greater Bay Area (the "Greater Bay Area").
The Greater Bay Area has been earmarked by the Chinese government to be the main driver of economic growth and international trade, and a key player in China's "Belt and Road Initiative".
The bustling cluster of 11 cities occupies about 56,000 sq km in land area. Despite comprising about 0.6% of China's total land area, the Greater Bay Area is home to approximately 5% of the total population. It contributes about 12% of China's Gross Domestic Product ("GDP"), or approximately US$1.6 trillion1, which is comparable to the economic size of South Korea. The GDP of the Greater Bay Area is expected to grow to approximately US$4.62 trillion by 2030, surpassing the Tokyo Bay Area as well as the New York Bay Area. Shekou, where the Proposed Hospital Project is located, is nestled at the southern tip of Nanshan, with Hong Kong just across the Shenzhen Bay, and was designated a Free Trade Zone by the Chinese government in 2015. The vibrant commercial area is home to many Fortune 500 Chinese companies, which are attracted to its connectivity, location, and growth potential.