ViacomCBS nears sale of CBS Studio City lots (report) – The Hollywood Reporter

ViacomCBS is reportedly set to sell its CBS Studio Center property in the Studio City neighborhood of Los Angeles.

Hackman Capital Partners had no comments to The Hollywood Reporter to a report in The Wall Street Journal that the major studio operator and Square Mile Capital Management put a winning $1.8 billion bid on the table. But sources familiar with negotiations with ViacomCBS say a formal deal has not yet been finalized, but is considered imminent.

Real estate and partner hedge funds have recently been the subject of a major wave of studio purchases after Hackman Capital and Square Mile Capital acquired Kaufman Astoria Studios, the New York studio backlot and home of originally from Paramount Pictures.

And TPG Real Estate Partners bought studio campuses in Toronto and Chicago owned by Cinespace Studios for about $1.1 billion. The latest studio acquisitions come as demand for production facilities and services increases worldwide amid a boom in streaming content and longtime studio owners cash in as the industry grows. consolidated.

ViacomCBS, which was unavailable to comment on a potential CBS Studios sale, purchased the 40-acre production land with 18 sound stages as part of the studio’s plan to offload non-core assets to focus on the streaming space. Earlier on August 16, real estate firm Harbor Group International purchased the Black Rock Midtown Manhattan property, known as the CBS building, for $760 million, with ViacomCBS taking a short-term lease on the spot.

Commercial real estate firm JLL oversaw the sale of ViacomCBS’ Radford campus to Studio City. The Hollywood studio also closed earlier sales from CNET and Simon & Schuster to fund its expanding content and streaming strategy.

The asset sales were intended to position ViacomCBS with a similar structure to streaming giant Netflix, which continues to grow its international originals as it expands around the world.

The potential deal with CBS Studios also follows Hackman Capital and Square Mile’s entry into the New York production market in September 2020 by acquiring Silvercup Studios in Long Island City and the Bronx. These New York studio assets are combined with a Hollywood studio portfolio that includes The Culver Studios in Culver City, home to Amazon Studios, Television City Studios, the 25-acre CBS Broadcast Center in West Hollywood and the MBS Media Campus, home to James Cameron’s Lightstorm Studios.