On Monday, private equity giant Blackstone, whose assets under management totaled $684 billion at last count, announced together with listed REIT Hudson Pacific Properties, whose West Coast real estate portfolio spans around 20 million square feet, a major real estate joint venture based around film, TV and digital production in Broxbourne, Hertfordshire, United Kingdom.
Funds managed by Blackstone Real Estate Partners and Hudson Pacific Properties have acquired a 91-acre site, 17 miles north of central London, through a joint venture for GBP 120 million (about $167 million). This acquisition will be accompanied by an expected total investment of over GBP 700 million (about 973 million), will be the partners’ first expansion of their Sunset Studios platform outside of the US.
The proposed development, which is subject to planning permission, would transform the site into one of the largest world-class film and television studio campuses. The project is expected to create over 4,500 permanent jobs for Broxbourne and the surrounding community and contribute more than GBP 300 million annually into the local economy.
This transaction is a continuation of Blackstone’s existing joint venture with Hudson Pacific, a Los Angeles-based office and studio owner and operator. Together, Blackstone and Hudson Pacific own a media portfolio that totals 3.5 million square feet, including 35 active sound stages and on-site creative offices, as well as development rights. According to a statement from the companies, Sunset Studios has hosted some of the biggest small and big screen hits including When Harry Met Sally and La La Land, as well as numerous Academy Award winning films.
Betting on creatives
“We are excited to expand our partnership with Hudson Pacific into the U.K., and intend to deliver a world-class studio facility that will help ensure that the UK continues to be a premier destination for content production globally. This is a continuation of our thematic investment focus and long-term conviction in media, entertainment and content creation,” said James Seppala, head of Blackstone’s European Real Estate division.
“We are thrilled to expand our Sunset Studios platform in the U.K., a global hub for film and television production. With our expertise developing and operating state-of-the-art media campuses and Blackstone’s resources and existing market presence, we are confident this facility will be in high demand from leading content creators,” added Hudson Pacific Chairman and CEO Victor Coleman. We look forward to working with Broxbourne Council to ensure the project has a meaningful positive impact on the local community.”
The investment was also lauded by British government leaders.
“This investment is excellent news for the U.K.’s film and TV industry, pumping hundreds of millions of pounds into the local economy and creating thousands of jobs for the people of Hertfordshire. The creative industries are at the heart of our plans to build back better. This will be a hub for both U.K. and international productions, showcasing home-grown talent on the global stage,” said Prime Minister Boris Johnson.
“This new studio is yet another vote of confidence in the UK’s booming film and TV industry. Through the British Film Commission, we’re supporting the development of stage spaces like this across the UK – boosting the local economy and backing our world-class creatives to make the next Bond blockbuster or bingeworthy box set,” said Oliver Dowden MP, Secretary of State at the Department for Culture, Media and Sport.
News of the investment comes nearly a year to the day that Blackstone completed its acquisition of a 49 percent joint interest in the Hollywood Media Portfolio, consisting of three Hollywood studio lots and five on-lot office properties spanning 2.2 million square feet, that had been jointly owned by Hudson Pacific. Netflix was the largest tenant in that property at the time the deal was announced.
