Pinewood Shepperton given planning permission for studio expansion - UPDATE

19th Jun 2014 11:39

In a potential game-changing development, film studio operator Pinewood Shepperton has been granted planning permission to double its studio capacity. The AIM-listed company, which is currently hosting shooting for the new Star Wars film, has been blocked by local objections several times since initial proposals in 2012.A revised Pinewood Studios Development Framework, which was submitted in February but was again rejected by South Buckinghamshire council in May, has now been granted permission by the Secretary of State for Communities and Local Government to increase Pinewood Studios capacity by roughly 100,000 square metres, including new studios and stages, workshops and production offices.Chief Executive Ivan Dunleavy said the project addressed a shortage of stage space in the UK, for which there was a "clear need". It has previously said the project would deliver growth for the next 15-20 years."As a result of today's green light from the Secretary of State, thousands of much needed new jobs will be created in this growing sector of the economy," he said. "We want to begin construction as soon as possible."Pinewood has said the £200m project, which will be phased over a 10-15 year period, will create 3,100 jobs in the film and television sectors and will double the existing Pinewood Studios.Broker N+1Singer said it was "game changing news" and predicts Phase 1 development to begin on a six-to-nine month view to help satisfy excess studio demand in the UK, with clarity on funding anticipated in the months ahead.Analysts Sahill Shan said: "The objective for management now will be to convert the planning outcome into income generation by completing the detailed design, getting the reserved matters approved by South Bucks District Council and initiating the construction process in the months ahead. Obviously funding will be a key component of the process given the long-term nature of the project will require a heavy call on capital."The average cost per 1,000 sq ft of development is anticipated to be £135, he said, so one 30,000 sq ft stage would cost £4m.Shares in the company were up 11.71% to 460.80p by 12:23 on Thursday. OH