Village Roadshow Limited
(ASX:VRL) has inked a deal with leading Chinese property developer Guangzhou R & F properties to establish a marine theme park on China’s Hainan Island.
The first part of the agreement will utilise Village Roadshow’s consultancy expertise in the design and development of the project.
The second appoints it as the exclusive operator of the new park for up to 20 years.
CEO Robert Kirby says the agreement represents significant reward and recognition of its Theme Parks branding and world class capabilities.
The total cost for the theme park will be around $550 million, and although Village Roadshow doesn’t have any ownership interest in the park, the level of management and performance based fees payable once the park is operating are expected to be significant.
Village Road show reported a fiscal 2012 net profit of $33.8 million.
