(Yicai Global) Oct. 29 -- Sunac China Holdings, one of China's leading real estate developers, plans to team up with Tsinghua University and the government of Qingdao to found a CNY4.5 billion (USD637 million) medical services center as it looks to enter the healthcare market.

The Tianjin-based firm penned the deals with the prestigious college and local government at a signing ceremony in Qingdao, Shandong province, on Oct. 27.

The move marks Sunac's official entry into the healthcare sector, its Chairman Sun Hongbin said, adding that the firm hopes the collaboration will give it an edge in the field as it looks to invest in improving people's livelihoods.

Sunac also pledged the same day to donate CNY1 billion to the Tsinghua University Education Foundation to assist in learning, scientific research and personnel training.

The medical center will span 420,000 square meters and follow the model of the Texas Medical Center in Houston, which houses over 60 medical institutions. It will leverage Tsinghua's strengths in the academic and scientific fields to ensure it can be competitive within the sector and encompass five main areas: a general hospital, an international hospital, and centers for medical education,  precision medicine research, and smart healthcare.

The hospitals will have around 1,800 beds in total and will set up remote diagnosis services to leverage the knowledge of renowned doctors at the world's top 10 medical institutions.

Editor: Tang Shihua