This just in…
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.”