Chinese developer Greenland takes another step towards diversification with tech incubators

Shanghai-based Greenland Holding Group, one of mainland China’s three largest developers, has taken another step toward diversification into non-property businesses, unveiling a new plan on Tuesdaythat could potentially turn multi-million square metres of its commercial properties into incubators for technology start-ups.

Under the plan that took nearly a year to finalise, Greenland is committed to investing significant resources as part of a strategic move to cut its reliance on property development, according to Xue Yingjie, executive deputy general manager of Greenland’s commercial business division.

“It is a grand plan and a strategically important move,” Xue said. “All the 30 million square metres of Greenland’s commercial properties across 80 Chinese cities can be potentially utilised to support the start-ups.”

The new announcement came just two weeks after Greenland inaugurated its platform for cross-border e-commerce business, more evidence that the developer was intent on creating new growth engines after its credit rating was downgraded by Fitch due to high leverage in the property business.

Detailed plans for establishing dozens of incubators on the Chinese mainland are still in the works, but Greenland said all its commercial properties across the 80 cities would earmark a large space for start-ups with a focus on firms in the areas of the internet of things (IoT), cloud computing and telecommunications.

The developer will also offer financial support to the start-ups through its financial subsidiaries and investment funds, with the goal of creating future industrial giants.