King Street Capital Management, in partnership with clients of Alberta Investment Management Corporation and a sovereign wealth fund, have formed a joint venture with East End Studios to acquire and expand production studios to meet growing demand for content creation.
Initial plans include three locations in the Greater Los Angeles area with a total capitalization of over $500 million and the planned delivery of approximately 750,000 square feet of stage and related ancillary space.
The partnership will target existing facilities, as well as redevelopment and development opportunities, with the aim of consolidating a portfolio of world-class production stages.
While initial plans include two locations in Glendale, California and a third in downtown Los Angeles, the joint venture is targeting opportunities in other major U.S. film hubs, as well as opportunities in established international markets.
David Walch, Partner at King Street, said: “As an active property investor, we are attracted to the imbalance between supply and demand in the studio apartment sector, which we have identified through our relationships and our expertise in the industry. We look forward to leveraging our extensive experience to successfully reposition real estate assets in the studio space. »
Ian Woychuk, Director of Real Estate at AIMCo, added: “Streaming services continue to experience rapid growth with a number of new players entering the market, a trend which has only accelerated during the pandemic. The rate at which technology is advancing in this field has made it possible to produce more sound stages, resulting in a huge demand for modern studio facilities. We believe the joint venture is well positioned to take advantage of this trend in key media markets globally.
King Street is a global alternative investment firm with $20 billion in public and private market assets. AIMCo is one of Canada’s largest institutional investment managers and East End Studios is a private equity-backed growth platform headquartered in Los Angeles, California with an office in New York.
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