4 Dec 2014 07:00
Pinewood Shepperton plc
Acquires 50% JV interest in
Shepperton Studios Property Partnership
Pinewood Shepperton plc ("the Company"), a leading provider of services to the global film and television industry, today announces that it has completed the acquisition of the 50% interest in the Shepperton Studios Property Partnership ("SSPP") formerly owned by clients of Aviva Investors ("Aviva"). As a result, the Company is now the sole owner of SSPP.
In 2006, Aviva and the Company formed SSPP as a 50-50 joint venture to hold and develop the land and buildings of Shepperton Studios under a 999 year lease and to underlet it to Shepperton Studios Ltd ("SSL", wholly owned by the Company) for 20 years. At that time, Aviva made a total payment of £30.5 million comprising £10.5 million in cash and a long term loan of £20 million to SSPP (non-recourse to the Company).
Since 2006, SSPP has invested some £9.8 million in new developments at Shepperton Studios and SSL has achieved consistent earnings growth through optimising occupancy of the Studio's soundstages and ancillary production facilities.
Today's acquisition comprises a total cash payment to Aviva of £36.8 million, including the full repayment and cancellation of the now £24.0 million of drawn debt facility within SSPP provided by Aviva. The transaction has been financed from internal resources and an enlarged debt facility of the Company, and is expected to be earnings neutral.
The 50% share of the SSPP net assets acquired was £9.5 million as at 31 December 2013, including the £24.0 million of Aviva debt funding, and 50% of the net income for the year ended 31 December 2013 was £2.8m.
Commenting on the transaction, Ivan Dunleavy, Chief Executive, Pinewood Shepperton plc, said:
"The purchase of Aviva's interest in SSPP will give the Company full control over the Shepperton site and future investment in the facilities there. We thank Aviva for their contribution and investment in Shepperton Studios over the past eight years."
Enquiries:
Pinewood Shepperton plc +44 (0)1753 656732
Andrew M. Smith, Director of Strategy and Communications
N+1 Singer +44 (0)207 496 3000
Richard Lindley
Notes to editors:
· Pinewood Shepperton plc is Europe's largest provider of stage and studio space
· Pinewood and Shepperton Studios together accommodate 34 stages, five dedicated digital television studios and five digital presentation studios
· Pinewood Studios is home to Europe's leading studio-based underwater filming stage, as well as one of the largest exterior water tanks in Europe
· The Group now offers financing to UK film and television production as part of its growing range of services
· Pinewood and Shepperton Studios have been home to over 2,000 films in more than 75 years
· Pinewood and Shepperton Studios have hosted over 600 TV shows
· There are over 240 independent, media related companies based at Pinewood and Shepperton's Media Hub
· The Pinewood Group's international network of Studios includes Toronto, Canada; Berlin, Germany; Iskandar, Malaysia; the Dominican Republic; Atlanta, Georgia, USA and activities in China
Forward looking statements
This announcement includes forward looking statements that are based on current expectations and assumptions. They involve risks and uncertainties and may differ, possibly materially, from actual results, performance and achievement. Neither the Company, nor any of its Directors, undertakes any obligation to update publicly or revise forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required.
For more information:
www.pinewoodgroup.com
Neither the content of the Company's website nor the content of any website accessible from hyperlinks on the Company's website, nor any other website, is incorporated into, or forms part of this announcement nor, unless previously published by means of a recognised information service, should any such content be relied upon in reaching a decision as to whether or not to acquire, continue to hold, or dispose of, securities in the Company.