Village Roadshow Signs Funds Management Agreement with Chinese Investment Company

Australia’s media company Village Roadshow Limited (VRL) recently announced that its wholly-owned subsidiary, Village Roadshow Holdings Pty. Ltd., has signed an agreement to establish a funds management business with China’s CITIC Trust Co. Ltd. (CITIC) after more than two years of strategic planning and negotiations. Funds raised will be invested in theme parks, entertainment facilities and related real estate development throughout Asia, particularly in China. CITIC is a subsidiary of CITIC Group, a state-owned company, which is one of the largest financial conglomerates in China. CITIC has a strong record in the development, establishment, management and fundraising of investment funds in China, in which both Chinese and international investors can participate. The first fund of approximately 500 million US dollars, which will be denominated in Renminbi, will be established later in 2015, followed by the creation of multiple future funds over the subsequent years. The funds management joint venture will be owned 51 percent by CITIC and 49 percent by the Village Roadshow subsidiary. Both parties will commit to invest up to 5 percent in the initial fund. The initial commitment of up to 25 million US dollars each will be contributed as projects advance over the next two to three years. (eap)