Hong Kong Disneyland expansion finalized

Walt Disney Co. and the Hong Kong government have finalized the long-awaited deal to expand the Hong Kong Disneyland park.

Walt Disney Co. will fund HK$3.5 billion (US$449 million) of the expansion, having previously offerred to fund as much as HK$7 billion of the project. The deal has been delayed due to the Hong Kong government's determination to retain a majority stake in Hong Kong Disneyland while at the same time opposing any investment in the park.

In addition to the HK$3.5 billion that Disney will be investing in the expansion, the company will also convert HK$2.7 billion worth of existing loans from the local government into equity. This will increase Walt Disney Co.'s 43% stake in the park to a heftier 48%.

Rita Lau, Hong Kong's Secretary of Commerce and Economic Development, says the expansion will add three new themed areas to the park, totaling seven available themed "lands" once the project is complete. Hong Kong Disneyland's total land area will increase by 23%, Lau said, and the new areas will be aimed at attracting the young adult crowd.

The project is expected to break ground later this year, pending legislative and financing approval at a meeting being held July 10. [Dow Jones via CNN Money]