A new joint venture has been formed to invest in studio space, including $500 million pegged for the L.A. market.
New York-based King Street Capital Management, Canada-based Alberta Investment Management Corp. and a sovereign wealth fund have joined to work with East End Studios to acquire and develop production studios.
The joint venture’s first project locations include three in the greater L.A. area and total more than $500 million. That will include two locations in Glendale and one in downtown L.A.
“We are thrilled to have such highly regarded institutions partner with us to meet the accelerating demand for content creation and required production space,” Shep Wainwright, a partner at East End Studios, said in a statement.
In total, the projects will have 750,000 square feet of stage and ancillary space.
“As an active real estate investor, we are drawn to the supply-demand imbalance in the studio sector, which we identified through our industry relationships and expertise,” David Walch, partner at King Street, said in a statement. “We look forward to leveraging our extensive experience to successfully reposition real estate assets in the studio sector.”
The joint venture is looking at existing facilities, redevelopment and development opportunities in United States and in international film hubs.
“Streaming services continue to experience rapid growth with a number of new players entering the market, a trend that has only accelerated during the pandemic,” Ian Woychuk, director of real estate at Alberta Investment Management said in a statement. “The pace at which technology is advancing in this field has enabled more production to occur in soundstages, driving an enormous demand for modern studio facilities. We believe the joint venture is well-positioned to capitalize on this trend in core media markets globally.”