Hackman Capital Partners, the real estate firm behind some of entertainment’s most iconic studio properties, has raised $1.6 billion to invest in projects globally.
It said today that it’s closed the HCP Studio Fund at $1.4 billion (above an initial $1 billion target) and raised another $200 million in co-investment equity capital commitments, all from a mix of investors including global sovereign wealth funds, public and corporate pensions, insurance companies, endowments, foundations and family offices.
Institutions like these are always shopping for niche asset classes and sound stages have become increasingly popular as demand for quality production space significantly outstrips demand. A moderation in spending by major streamers has yet to make a dent in the explosion of content needing a home in major production hubs.
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Hackman has been raising the HCP Studio fund for about 12-15 months and has tapped it for studio investments announced along the way. As of Q2 2022, it said, the fund was approximately 50% invested and committed and has made seven investments to a total of $488 million. The idea is that it still has considerable firepower as it continues to look “for studio and media assets with attractive in-place income and growth potential in top production markets across the world.”
The developer’s portfolio now includes 18 studio properties with 120 active sound stages, and 90 more in development, for over 10 million square feet in North America, the U.K. and Scotland.
Its studios are Culver Studios, Radford Studio Center, Television City Studios, MBS Media Campus, Raleigh Studios, Saticoy Studios, and Sony Pictures Animation Studios in Los Angeles; Silvercup Studios and Kaufman Astoria Studios in New York; Second Line Stages in New Orleans; Wardpark Studios in Scotland; Ardmore Studios, Troy Studios in Ireland; The Wharf London in the U.K.
Eastbrook Studios London in the UK, Greystones Media Campus in Ireland, and Basin Media Studios and Downsview Studios in Toronto are in development.
HCP acquired many of its assets with joint venture partner, Square Mile Capital Management.
Hackman’s MBS Group venture is a studio operating and production services company, supporting more than 550 existing sound stages and 450 productions a year from its network of 100 locations across seven countries. It designs and constructs studios, more than 25 to date with 115 sound stages and ancillary facilities totaling over 3,500,000 square feet.
“We are pleased to have completed this institutional capital raise for the studio and media strategy and are grateful for the strong support from our new investment partners,” said Michael Hackman, CEO of Hackman Capital Partners. “We have built a unique and highly differentiated platform that has established Hackman as the premier owner and operator of independent film and television studios. Combined with our longstanding industry relationships, we provide a sustainable competitive advantage, and are well capitalized to execute on a strong pipeline of investment opportunities.”
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