UK FILM STUDIOS
studios: The space race
rolls on O
Tim Dams takes a look at the UK’s booming studios market where demand for space, both real and virtual, shows no signs of slowing down any time soon
nce a staid industry dominated by a handful of veteran players, the studios business has been transformed in the past ten years. Now hardly a week goes
by without a new studio being announced or ambitious expansion plans being unveiled (see box, starting next page). Money is pouring into the
sector, with investors chasing a share of the cash being spent by streamers and studios on high-end TV and film production. The film and TV industry are rightly seen as a
major bright spot within the UK economy. Official BFI statistics showed that total production spend reached £5.64bn in 2021, a new record – and £1.27bn higher than for the pre-pandemic year 2019. HETV was largely responsible for driving overall
production levels to the new record, topping £4.09bn, nearly double pre-pandemic 2019 levels. By comparison, film production spend reached
£1.55bn, a 13% increase on 2020. Such figures have given private investors the
confidence to fund a swathe of purpose-built stages up and down the UK, to expand existing sites, or to repurpose old warehouses into studios.
PRODUCTION
For example, Aermont Capital – the owner of
Pinewood Studios Group – is backing the expansion of both Pinewood and Shepperton Studios. Warner Bros. has also expanded its Leavesden site, adding three new stages including a virtual production studio. Elstree Studios in BorehamWood, home to Netflix’ The Crown, is just finishing two large sound stages due to open in late Spring this year. Meanwhile, Legal & General, Comcast and
NBCUniversal are building Sky Studios Elstree, which opens 13 stages this year. Studio group Blackhall Global Partners is financing the 18-stage Shinfield Studios near Reading.
Investment firm Blackstone
and Hudson Pacific Properties are backing a major new studio complex in Hertfordshire. And Hackman Capital Partners are financing Eastbrook Studios in Dagenham, which will offer 12 stages. Many warehouses, factories or airfield buildings
have also been repurposed, like Arborfield Studios near Wokingham, or temporary stages have been created such as the newly opened Troubadour Meridian Water Studios in North London and The Depot in Liverpool.
THE SMART MONEY What’s remarkable is that for many years, private investors largely avoided the studio sector. They were seen as white elephants, empty much of the time and delivering unpredictable returns on investment. Instead, investors preferred property sectors such
as shopping centres or industrial warehouses where tenants would lease space for the long-term. As a result, new studios rarely came to market in
the UK. If they did, they were usually funded with the help of local authorities who saw the advantage of investing in spaces that could attract highly skilled, and relatively high-paying jobs to their area. However, the dynamics of the business “have just
completely transformed in the past five years,” says Nick Smith, managing director of Shinfield Studios. High-end television, in particular, has led to huge
changes in investor attitudes towards studios. Streamers such as Netflix, Amazon Prime Video,
Disney+ and HBO Max have ramped up spend on drama series, as the BFI figures attest. Smith says there are now six premium markets
in the world where streamers and US studios are looking to make content - Los Angeles, New York, Atlanta, Toronto, Vancouver, and the UK. “If you rank all of those, the UK is probably top of the tree. Everybody is looking at the UK.” The UK’s highly regarded on and off-screen talent
base, its favourable exchange rate, depth of facilities and, crucially, its dependable and competitive tax credit have long made it a favourite shooting location for US studios. This has played to the UK’s advantage during the streamer boom, helping attract record numbers of scripted projects.
Spring 2022
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