Melco International to create a theme park in Zhongshan

Hong Kong-listed Melco International Development Ltd. said it will develop out-of-game complex facilities, including theme parks, in Zhongshan (pictured), a city near Macau in mainland China's Guangdong province, as part of a joint venture. Controlled by entrepreneur Lawrence Ho Yau Lung, Melco International is the parent of Melco Resorts and Entertainment Ltd., a licensed casino operator in Macau.

Melco International's Zhongshan Planning Partner is Hong Kong-listed Agile Group Holdings, an investment holding company primarily involved in property development in mainland China. The two companies are planning "premium residential, entertainment and hospitality mix uses," according to a press release on Wednesday.

The project will be undertaken by a company called Melco Yaquang Real Estate Development Limited, which will be responsible for theme park development within the entire project.

According to a separate filing with the Hong Kong Exchange, Zhongshan's land area covers about 504,000 square meters (5.43 million square feet) and includes a range of land use permits ranging from 40 to 70 years, depending on specific utilization.

The total price for land use rights was about 4 billion yuan ($617.3 million), which included certificate tax and interest.

Melco International said in a press release that the site is located in the "heart of the Middle Mountain" and is "well connected to nearby cities including Macau, Zhuhai, Guangzhou, Shenzhen and Hong Kong."

Zhongshan is part of China's Guangdong-Hong Kong-Macao Taiwan regional initiative, a move by the national government to further integrate the economy and people of major population centers.

Zhongshan projects include "residential complexes, office areas, hotels, service apartments, wellness centers, shopping malls and theme parks," according to a Melco International release

Melco International said it expects most of its plans, including theme parks, to be completed by 2025.

The filing states that Melco Group will be responsible for the development and management of the theme park. Agile Group will be responsible for the development of the "remaining theme park part" of the project.

Under the joint venture agreement, Melco will contribute 150 million yuan to the acquisition of the site and 250 million yuan to the development of the project. Melco International will also support the construction and pre-opening costs of the theme park, which has a budget of more than 1.45 billion yuan, as well as the ongoing operating costs of the theme park.

The Melco International subsidiary will have "alone rights" to any revenue or loss arising from the ownership and operation of the theme park, the filing states.

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