I Screen Studies

The news this week that the largest British studio operator, Pinewood Studios Group which owns Pinewood and Shepperton, appears to have taken a controlling interest in the Filmport mega-studio in Toronto should not come as much of a surprise. After all, Pinewood-Shepperton has been looking to establish a presence in Canada’s largest production centre for a number of years, and under then-chairman Michael Grade (now head of British commercial television broadcaster ITV) was one of the unsuccessful bidders for the megastudio contract which was eventually won by Toronto real estate developer Rose Corp in 2004.

Hollywoodnorthreport.com wrote about the possible deal with Pinewood in December 2008.

Filmport has been under used since it opened in part because of the high value of the Canadian dollar against the American dollar which is thought to have discouraged so-called runaway production, although another more significant reason may be the extraordinary competition going on between US states to attract film production through tax credits and other incentives.
It will be interesting to see whether Pinewood’s intention is simply to own and operate the mega-studio, or to extend its British model and coordinate bookings in Toronto with those in England. This could mean that more productions of all sizes, and especially very large projects, can be pitched for and accommodated at one or more of the three studios. Tom O’Regan and I wrote in our book The Film Studio about the merger between Pinewood and Shepperton, and the initial attempt to gain a foothold in Toronto. Then, as now, the reasoning behind the move could well be to capture more of the very large budget films, with the availability of so many soundstages enabling film projects to be more efficiently spread and sequenced across the three facilities than if they were to remain operating as independent entities.
Variety is reporting that the city of Toronto will take a minority stake in the studio, with Pinewood (backed by Toronto development company Castlepoint Group and investment firm ROI capital) to manage Film Port for the next five years after which Castlepoint and ROI would assume majority control.

On Monday, Toronto’s city council voted 31-7 to approve a loan for the city to purchase minority ownership in the C$65 million ($52.5 million) state-of-the-art studio and partner with Pinewood.

Terms of the closely guarded deal and the amount of the loan, purportedly worth millions, will be made public via the Toronto Economic Development Corp., which controls the lease on the land, once details are finalized.

The arrangement, which will give Toronto a seat on the studio’s board, should boost the city’s struggling film and TV industry. Mayor David Miller commented the city’s involvement is a transitional measure.

Reports suggest that Pinewood is partnering with Toronto development company Castlepoint Group and investment firm ROI Capital to acquire FilmPort.

The idea is that Pinewood would manage the Canadian studio for five-years after which Castlepoint and ROI would assume majority control.

If the deal comes off, it will allow 80% stakeholder Rose Corp. to end its involvement, opening the way for other investors.

The U.K. studio has expressed interest in FilmPort on previous occasions and in 2004 Pinewood and Castlepoint Development were beaten by Toronto real estate developer Rose Corp. to build the studio.

Last year Castlepoint and Pinewood established a joint venture, CastlePoint Studio Partners, to build a new studio in downtown Toronto.

Filmport has struggled since it opened last fall as events conspired against the Canuck film industry, including the strength of the Canadian dollar against the greenback and threats of a Hollywood actors’ strike..

FilmPort prexy Ken Ferguson recently indicated that the studio was in talks with several Hollywood productions that were considering using the facility later this year. He declined to comment on the city’s involvement and Pinewood’s potential new role.

A spokesman for Pinewood declined to comment.