By M&C Movie News May 19, 2007, 9:25 GMT
SHANGHAI, China (M&C) – Metro-Goldwyn-Mayer Studios Inc. (MGM) has signed a licensing agreement with Hong Kong’s Tengxun Entertainment and Management Ltd., with the participation of Shanghai Tianhong Real Estate Investment Co. Ltd., which allows for the development and construction of MGM STUDIO WORLD, a lifestyle center built around the MGM brand and its intellectual properties.
Currently under development, MGM STUDIO WORLD will be located in the Changfeng Ecological Business District, southern part of Putuo District in Shanghai. It is an indoor venue combining dining, unique retailing, night-time venues and entertainment in a space of approximately 200,000 square feet. The consumer-friendly entertainment destination is slated to be unveiled in the summer of 2010 to coincide with the World’s Fair Expo in Shanghai.
According to initial designs, the historic MGM logo will be prominently displayed at the entrances to the complex. Large, colorful images will be selected from the studio’s vast film library of approximately 4,000 titles, which will be incorporated into the complex's décor.
Among the key MGM branded areas within the complex are the exterior marquee, the central plaza spectacular (a multimedia show incorporating water features, special effects and films from MGM’s library) and branded merchandise, MGM STUDIO WORLD will include special events as well as promotions of MGM’s glorious history and current theatrical and television content.
Consumers recognize MGM as having the best brand name in the entertainment world. The studio’s franchises include James Bond, Rocky, Pink Panther, Stargate, and The Thomas Crown Affair, along with MGM’s classic library of films and television programs.
In making the announcement, Harry E. Sloan, Chairman and Chief Executive Officer, MGM, stated: “We are placing the MGM Brand in China in a big way. Given our studio’s rich history, MGM is synonymous with Hollywood and we are excited to bring this experience to consumers in Shanghai, which is one of the most dynamic cities in the world. MGM STUDIO WORLD is the first step in bridging traditional Hollywood Entertainment with China’s film and television industry in the region. We are looking forward to utilizing this project as a way to build strong partnerships with China in the future.”
“We are extremely honored to have MGM as our partner to create the state-of-art entertainment themed environment for the Chinese consumers. We are confident that the MGM STUDIO WORLD will become one of the best shopping and entertainment venues in Shanghai,” said Mr. Chai Zhi-kun, Chairman of Shanghai Tianhong Real Estate Investment Co. Ltd.
Commenting on the collaboration between MGM and Shanghai Tianhong, Dr. Bao Hwang, President of Hong Kong Tengxun Entertainment Management Ltd. added: “This project sets a new standard of collaboration between the entertainment industry and commercial real estate to create an entertainment themed lifestyle entertainment centre. We are looking forward to working with MGM and leveraging this exciting project to develop more business opportunities in China.”
The MGM license was negotiated with a joint partnership of Shanghai Tianhong Real Estate Investment Co. Ltd, and Hong Kong registered Tengxun Entertainment Management Ltd. With total investment of up to RMB1.2 billion (US$ 156.2 million), Tianhong will be the developer and constructor as Tengxun is a project manager for the overall project and responsible for the business operation after completion.
While MGM will not make any financial investments in the project or operate it, the studio will serve as the licensor and creative collaborator for the entire project.
Metro-Goldwyn-Mayer Inc.
Metro-Goldwyn-Mayer Inc., through its operating subsidiaries is actively engaged in the worldwide production and distribution of motion pictures, television programming, home video, interactive media, music and licensed merchandise. The company owns the world’s largest library of modern films, comprising around 4,000 titles.
Operating units include Metro-Goldwyn-Mayer Studios Inc., Metro-Goldwyn-Mayer Pictures Inc., United Artists Films Inc., MGM Television Entertainment Inc., MGM Networks Inc., MGM Distribution Co., MGM International Television Distribution Inc., Metro-Goldwyn-Mayer Home Entertainment LLC, MGM ON STAGE, MGM Music, MGM Worldwide Digital Media, MGM Consumer Products and MGM Interactive. In addition, MGM has ownership interests in international TV channels reaching nearly 110 countries.
MGM ownership is as follows: Providence Equity Partners (29%), TPG (21%), Sony Corporation of America (20%), Comcast (20%), DLJ Merchant Banking Partners (7%) and Quadrangle Group (3%).
Tengxun Entertainment and Management Limited
Tengxun Entertainment and Management Limited was established in Hong Kong by private investor Dr. Bao Hwang in 1999. The company business involves media entertainment and consultancy. In 2007, it became the exclusive licensee of MGM in the Shanghai region to develop MGM STUDIO WORLD.
Shanghai Tianhong Real Estate Co. Ltd and Tianhong Group
Shanghai Tianhong Real Estate Investment Co. Ltd. was established in 2004 by Beijing Tianhong Group and Beijing Tianhong Real Estate Investment Co. Ltd. Shanghai Tianhong won the Changfeng, Plot 2 from a competitive group of bidders. This was because of its creative master plan and strong financial background. Plot 2 (The North) is listed in the Shanghai City Government “Five Year City Development Plan: Modern Service Zone” and planned as 300,000 sqm of world-class entertainment and commercial space.
Tianhong Group is the parent company of Shanghai Tianhong. Tianhong Group has recruited a group of overseas professionals, together with locals who possess high educational backgrounds and skills, to build the Changfeng project. These professionals will create the new benchmark standard for Tianhong Group in the Shanghai real estate industry.
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