Blockbuster film studio REIT planned

Investors are being sought to seed a new fund focused exclusively on buying and developing industrial land for studio space. Ryan Dean, founder of global content creation company RD Group, has launched the Creative Spaces Property Fund and is seeking £100m of investment for its first acquisition. Dean hopes to grow the fund to at least £300m-£350m, potentially through the creation of a listed specialist studio REIT. The private fund will buy industrial land in and around London for conversion into high-quality film studio space. It is being launched as the film and TV production industry booms in the UK, with billions of pounds of investment being poured into content creation and a supply-and-demand problem similar to that seen in the life sciences sector. There is demand for 6m sq ft of studio space in the UK, according to recent figures from Knight Frank, but less than 3m sq ft coming through planning. Dean believes much of this space is being planned in locations that do not consider the unique requirements of studios and their occupiers, including the design specifics of the space and the geographic requirements of staffing studios. He said: “The fund is the only one of its kind that acquires, develops and leases these spaces and has a mission to address the huge shortfall in high-quality studio space needed to meet the ever-increasing demand of global content creators.” The fund will focus on a “world-class” product that places sustainability at its heart and delivers studio spaces not just for the film and TV industry but the growing video game production market and live events sector. As an operator and developer, Dean believes he is uniquely placed to understand the operational needs of the production community. Talks are under way for the fund’s first acquisition – a soon-to-be vacant site in west London where Dean has drawn up plans for a multi-studio development with offices and cultural spaces. A number of other sites are also being eyed, said Dean. Other sites on the market include the BBC’s studios in Elstree. The site, where EastEnders is filmed, is expected to sell for more than £70m in a sale-and-leaseback deal being run by Lambert Smith Hampton. Dean’s first studio occupies 45,000 sq ft at SEGRO’s Premier Park in Park Royal, NW10. The facility, which has five stages, is the first net-zero studio space in London. He hopes to expand the business across London before opening more studios in New York and Los Angeles.   To send feedback, e-mail samantha.mcclary@eg.co.uk or tweet @samanthamcclary or @EGPropertyNews Images © RD Studios