Studio Expands to Malaysia

Pinewood Shepperton have signed a deal to develop a second overseas film studio in Malaysia. The group already have a studio in Canada, the Malaysian studio will be part financed by the Malaysian government.

The deal is with Khazanah Nasional Berhad, the country’s state-owned investment arm. Pinewood is providing operational and marketing input as well as technical advice and rights to use its global brand.

The facility will initially target productions from Malaysia and the Asia-Pacific before expanding to international productions.

The studio will be built on an 80-acre site in the south of Malaysia and will cost about $120m. About 3,000 jobs will be created and it is expected to open in 2013.

Analysts do not envisage Pinewood having to make any capital contribution to the physical asset or have any ownership.

A research note from broker Investec, said: “PWS should get brand/licence fees for use of its name ‘Pinewood Iskandar Malaysia Studios’, plus for sales/marketing services.” The company expects to start making income from 2011.

Ivan Dunleavy, chief executive of Pinewood Shepperton, pointed to Malaysia’s central location and its English-speaking and skilled workforce.

“This represents important progress in the company’s strategy to build a meaningful new revenue stream, exploiting our expertise and brand internationally.

“Following our deal for Pinewood Toronto and now Pinewood Malaysia, we are exploring further opportunities in this new and growing market.” Trading for 2009 was in line with expectations, the company also said.

(Source The Financial Times)