NYSE-listed real estate investment trust Hudson Pacific Properties has acquired Quixote Studios for $360m (€349m).
Hudson Pacific said it will finance the acquisition with $200m of borrowings from its credit facility plus a $160m deferred purchase price.
Founded in 1995, Quixote Studios has grown to become the leading provider of sound stages and production services to the entertainment industry. The US company has over 500 cast trailers, trucks and specialised vehicles as well as long-term lease rights to 23 sound stages in Los Angeles and three in New Orleans.
Hudson Pacific said the acquisition complements its Sunset Studios portfolio, which includes more than 60 stages across five lots in Los Angeles and the UK, and its production services division’s transportation fleet, which includes more than 1,400 cast trailers, trucks and specialised vehicles servicing productions in Los Angeles, Atlanta and Albuquerque.
Jeff Stotland, executive VP of global studios and services for Hudson Pacific Properties, said: “Our acquisition of Quixote Studios represents further execution of our strategy to enhance our core studio business for customers with a full-service offering of sound stages, both in terms of size and location, and production services in key global markets.
“Quixote strengthens our reach to capture strong secular demand for studio and related assets, including excess demand at our Sunset Studios locations, and enables us to achieve immediate economies of scale while further diversifying our client base.”
Mikel Elliott, the founder of Quixote Studios, who will remain in a leadership position, said: “Hudson Pacific and Quixote’s shared purpose is to elevate the production experience for crews on our collective stages as well as on location in the major global production markets. Together, we will further innovate, inspire and solve new production challenges in the era of streaming content and beyond.”
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