Walt Disney has agreed to finance a HK$3.63bn ($467m) expansion of its struggling theme park in Hong Kong to lure more visitors, following two years of “challenging” negotiations with the territory’s government.

Disney, which has a joint venture with the Hong Kong government to operate the park, will inject HK$3.5bn of new capital to fund the expansion. The US company will also put in HK$2.7bn by converting its loans in the partnership to equity.