Merlin Entertainments plc LEGOLAND Korea agreement (3653M)
07 January 2019 - 10:00PM
UK Regulatory
TIDMMERL
RNS Number : 3653M
Merlin Entertainments plc
07 January 2019
Merlin Entertainments announces agreement to open LEGOLAND
Korea
South Korea's first LEGOLAND Park scheduled to open by 2022
Local government to provide significant funding and
infrastructure support
7 January 2019: Merlin Entertainments ("Merlin"), a global
leader in location-based entertainment, today confirms that it has
entered into a partnership agreement with the Gangwon Provincial
Government to build a LEGOLAND Park in South Korea, scheduled to
open by 2022.
LEGOLAND Korea will be situated upon the island of Hajungdo in
Chuncheon, located approximately one hour's journey east of Seoul
and within a 2-hour drive time of nearly 24 million people. The
full-scale theme park resort will also incorporate a fully themed
LEGOLAND Hotel upon opening. It will employ 1,600 people and is
expected to provide an economic boost to the city of Chuncheon and
the surrounding region.
The total cost of the resort, including the on-site
accommodation, is expected to be KRW 290 billion (GBP205 million(1)
). Merlin will invest KRW 210 billion (GBP148 million) into the
development of the resort, which will be fully owned and operated
by Merlin.
The remaining funding of KRW 80 billion (GBP56 million) will
come from LL Developments, the investment arm of Gangwon Province.
Additionally the funding for necessary additional infrastructure
adjacent to the resort will be provided by national, regional and
local governments.
It will be Merlin's tenth LEGOLAND Park, following LEGOLAND New
York's scheduled opening in 2020. Merlin is also in advanced
discussions with third parties about a number of sites for LEGOLAND
Parks in China and continues to see opportunity for 20 LEGOLAND
Parks around the world, over time.
Nick Varney, Merlin's Chief Executive Officer, said:
"It's been long in gestation, but I'm delighted that we are now
in a position to move forward with opening LEGOLAND Korea Resort.
We know Koreans love theme parks and love LEGO, and together with
the Gangwon authorities, we have already established an attractive
and well-connected site in Chuncheon. We look forward to
accelerating progress with our partners who have contributed
significantly with funding and infrastructural support, and to
welcoming our first guests to LEGOLAND Korea Resort.
We remain excited about the potential of LEGOLAND Parks, the
roll out of which is a strategic growth driver for Merlin, and we
continue to look at opportunities for further sites around the
world."
As part of the ongoing relationship, the Korean Government,
Gangwon Province and Chuncheon City have already invested in the
construction of a new bridge to Hajungdo island and undertaken
groundworks on the site. Further retail and complementary leisure
offerings are planned as part of the island's overall
development.
The LEGO brand was introduced to South Korea in 1984 and quickly
established itself as one of the country's best loved toy brands.
The LEGO brand is a market leader and South Korea has developed to
become LEGO Group's third largest market in Asia Pacific.
Merlin also operates a SEA LIFE Centre in Busan, South
Korea.
(1) Based upon a KRW/GBP exchange rate of 1418 as at 03 January
2019.
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) No 596/2014.
Ends
For enquiries contact:
Investors
Simon Whittington +44 (0)1202 493 011
Media
James Crampton
Brunswick +44 (0)1202 493 014
Fiona Micallef-Eynaud / Imran
Jina +44 (0)20 7404 5959
Images are available on request.
About Merlin Entertainments plc
Merlin Entertainments plc is a global leader in location based,
family entertainment. As Europe's Number 1 and the world's
second-largest visitor attraction operator, Merlin now operates
over 120 attractions, 18 hotels and 6 holiday villages in 25
countries and across 4 continents. The company aims to deliver
memorable experiences to more than 65 million visitors worldwide,
through its iconic global and local brands, and the commitment and
passion of its c.29,000 employees (peak season).
Visit www.merlinentertainments.biz for more information.
About LEGOLAND Parks
Merlin currently operates eight LEGOLAND parks in seven
countries, including the most recent new openings in Dubai (2016)
and Japan (2017), and plans to open a ninth LEGOLAND New York in
2020. The LEGOLAND Park Operating Group constitutes 38% of Merlin
revenues and welcomes 15.3 million guests (2017). The roll out of
new LEGOLAND Parks is one of the key growth drivers of Merlin
Entertainments.
Merlin also operates LEGOLAND Discovery Centres, a smaller,
indoor LEGOLAND experience which brings to life 'learning through
play'.
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END
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