'Hollywood China' Entertainment Project Slated for Shanghai

2007-07-30 09:53 771

HOLLYWOOD, Calif., July 30 /Xinhua-PRNewswire/ -- Shanghai Film Group Corporation (SFG) and Nations Trust Ltd. have signed a five year JV "Cooperation" Agreement for what may become the entertainment "sweetheart deal" of the decade in China. SFG's vision to become a world-class studio has expanded to include Hollywood co-production, a movie theme park and leisure entertainment properties. The Agreement, signed on Valentines Day, February 14, 2007 by SFG President, Ren Zhonglun has been under wraps awaiting Nations Trust Ltd.'s announcement (this week) of $800M in funding commitments for what is now being termed "Hollywood China Studios."

Recent meetings orchestrated by Nations Trust Ltd. with SFG executives in Hollywood included feature film producers/directors, a major Hollywood movie studio, international film distributor, and an international theme park developer (to be announced). This alliance of Hollywood notables working with SFG is a "golden opportunity" for investors in China's burgeoning film and entertainment industry.

SFG, one of China's largest film groups, is composed of Shanghai Film Studio, Animation, Dubbing and Documentary Studios, and Film Technology Plant. SFG owns 5 large film production enterprises, a large shooting base, 14 TV Series Productions, and the largest cinema circuit, with 75 cinemas and 198 screens topping the list in China. SFG also recently acquired the Warner Brothers Cinemas in Shanghai.

The JV Cooperation plans to develop SFG properties through three distinct projects: Phase I, redevelopment of SFG's studio back lot "Old Nanjing Road" Movie Set (circa 1949) will be transformed into "Shanghai Nights" enchanting "city walk" entertainment complex. Phase II, "the construction of the film and television shooting base, the construction of the film post-production base, theatre complexes, film and TV co-productions, CG animations, international distribution of films and TV series, entertainment and leisure projects," Phase III, a major Movie Theme Park incorporating 4D technologies for what will be the first "East meets West" state-of-the-art theme park development in Asia.

Nations Trust Ltd. has worked seven years to develop the "Hollywood China Studio" and Movie Theme Park concept. Nations Trust Ltd. "Risk Mitigation Structured Finance" (c. 2002), incorporating the principles of Alternative Risk Transfer (ART) underwrites the downside of foreign markets as an added benefit to investors. Lender's Indemnity coverage will be put in place through major Underwriters in Europe.

Over five years, the project is estimated to require $1.5 Billion. SFG, who presently owns the Crown Plaza Hotel in Shanghai, anticipates Nations Trust Ltd. raising additional funds to build a world class "Hotel and Galleria" within the "Shanghai Nights" complex.

"Nations Trust China Holdings Ltd." (SPV), a wholly owned subsidiary established to manage this project, holds rights to 75% of the shares in the Hollywood China JV and is offering equity participation to interested investors. With the coming Olympics and Shanghai World Expo, "Sponsorship" is also being offered to companies seeking exposure in China. Bona fide parties may contact Nations Trust Ltd. at or to receive a prospectus.

Source: Nations Trust Ltd.
Keywords: Entertainment