CMC, Merlin Entertainment agree Legoland JV
CMC Capital Partners has agreed to form a joint venture with London-based Merlin Entertainments Group to develop a Legoland park in Shanghai.
The Legoland Discovery Center is among three attractions that Merlin and CMC plan to open in the next 18 months. They also have built a Madame Tussauds and Sea Life aquarium in Chongqing.
Merlin is the world's second-largest visitor attraction operator, which has over 100 attractions, 12 hotels and four holiday villages in 23 countries. The entertainment operator already has five attractions in China - including Madame Tussauds in Shanghai, Hong Kong, Beijing and Wuhan, and Chang Feng Ocean World aquarium in Shanghai.
As part of the agreement, the partnership will also consider building on existing Merlin brands such as The Dungeons, in addition to new concepts and brands such as DreamWorks Tours - KungFu Panda Adventures.
"China is a key growth market for the group and we see this partnership as providing a significant opportunity to accelerate our plans," said Nick Varney, Merlin's CEO, in a statement. The joint venture deal was signed during Chinese president Xi Jinping's recent visit to the UK.
Walt Disney, the world's largest theme park operator, will open its $5.4 billion resort in Shanghai's Pudong district early next year, while DreamWorks Animation is also expected to open its $2 billion entertainment complex in Shanghai in 2017. CMC was one of several local parties to form a China JV with DreamWorks in 2012.
"CMC has a highly diversified portfolio of entertainment content and platform. Through investing and operating across the whole spectrum of the media and entertainment sector, CMC has accumulated unique experience in aligning international know-how with local market needs," said Ruigang Li, chairman and CEO of CMC.
Li set up CMC in 2010. The firm claims to be China's first media and entertainment-focused PE fund approved by the National Development and Reform Commission (NDRC). The firm - which also has exposure to internet and mobile, and life style sectors - currently is looking to raise $1 billion for its second media-focused fund.
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