Property Consultancy Services – Film Studios
Site: 70,000 sq ft of film studios, significant infrastructure and 400 acres of development land
Acting on behalf of : PWC, major insolvency practitioner
The Brief
Dragon Studio Wales, is a complex of film and television studios in Bridgend, Wales. The project was first developed by the consortium Dragon International Studios, chaired by Richard Attenborough. First proposed in 2001, two developers, Fairfield Properties and Westair Properties backed the production of the 350-acre site with plans to include a theme park, hotel and rainforest complex. At the time 12 studios were planned, which it was said could create nearly 2,000 jobs, attracting film-makers from around the world. Beset with problems including Welsh Assembly government objections, planning delays, hold-up of grants, management of protected species and rising costs resulted in extensive delays in getting the project underway and in 2008, at the height of the ‘financial crash’ PWC were called in to resolve the financial situation following the consortium being placed into Administration.
Chris Price MRICS (director of PACT and formerly Edward Symmons) was appointed to provide strategic advice and seek a buyer for the stages as well as looking for television and film opportunities.
The challenges
• Impact of the 2008 Global Crisis and challenging market conditions with the bottom having fallen out of the property development sector
• Advising over only a part of a much larger scheme and involving multiple stakeholder interests
• Inherited complications associated with the site including part built units and incomplete infrastructure
•Manging ongoing holding costs, such as security, insurance etc while a buyer was sought
The Solution / Actions taken
• The initial work comprised providing valuations to the stakeholders to define the current position while working with third parties to maximise the returns by including the subject property as part of a larger holding.
• Seeking and putting in place tenants for the film studios in order to generate an immediate and ongoing return.
• Arranging for tenants to be responsible of all financial outgoings for security, insurance etc in order to minimise the costs to the Administrator.
• Monitoring the condition of buildings throughout tenancy period and undertaking end of term dilapidation repairs to ensure buildings left in good order.
• Maintaining close contact with relevant government departments responsible for the development of the film industry in Wales and fundamental in attracting film production companies to the region.
• Extensively marketing the property and liaising and negotiating with interested parties, navigating complex issues and challenging conditions.
• The assignment involved coordinating and managing many aspects of the surveying profession including valuation, agency and letting services, lease advisory services, planning and building surveying.
The Outcome
In 2018, the site was sold in two parts with an area of the land with development potential sold to local developers Persimmon Homes and the film studios sold to Shadow Holdings, a company specialising in the management of studios.
During the holding period, prior to the sale, significant revenues were generated from the studios while maintaining their condition and thus appeal to the market.
And now . . .
Designed to house large scale high-end production companies, Dragon Studios is one of the leading studios in the UK and the finest site of its kind in Wales. Since 2019 Dragon TV &film Studio Wales has operated at 100% capacity with companies including NBC Universal, Netflix, Disney and Lucas Film making Dragon Studios their home for flagship shows, hosting high profile projects such as Keeping Faith & Upstairs Downstairs (BBC) to Hollywood studio productions such as Will (TNT), The Bastard Executioner (Fox), Brave New World (NBC Universal) and Ironclad (Mythic International Entertainment).Dragon Studios has experienced rapid growth and identified significant new opportunities as it celebrates millions of pounds of new contracts under way with TV and film production companies in the US.
PACT has continued to provide property advice
Find out more about the studios story: Website | Background | Latest News
Updated October 2022
Lead Director: Chris Price MRICS NARA
Chris is an RICS Property Valuer & LPA
Receiver, with 30 years experience in the corporate
recovery / asset debt recovery sector