A report has laid bare the challenges faced by Elstree Film Studios, best known as the home of the original “Star Wars” films.
The studio, which is owned and operated by Hertsmere Council, requires a cash injection of £150 million to £200 million (up to $255 million) to “replace life expired buildings and ensure its competitiveness beyond the 21st century.”
Last summer, during the replacement of some studio doors, asbestos was found in three soundstages as well as other buildings, which required remediation work. During that work, the contractor reported that some of the roof structures and walls were in a “dangerous” state, with some concrete beams dating back to the 1960s and ‘80s having already snapped.
The report, which is titled “Procurement of a Consultant – Elstree Film Studios Strategic Future – Way Forward,” also states that flooring, windows, electrical wiring and mechanical plants needs to be replaced and the IT infrastructure needs to be upgraded.
It proposes the council hire a film consultant at a tune of £90,000 to advise on the best way forward because, according to the report, neither the council nor the studios have the funds to carry out the necessary works.
Other options including seeking external investors, leasing the studio out longterm or potentially even re-developing the site. The report says the site of the studios is worth between £40 million to £100 million for residential use while the Elstree Film Studios brand is “worth a substantial sum.”
According to the report, revenues from the studio account for 20% of the council’s ongoing revenue budget. But it says Hertsmere cannot continue to invest in the studio because it “needs to diversify its investment to mitigate financial risk to its local tax payers in the event of a downturn in the film industry.”
It is therefore important, the report continues, the council begins “exploring alternative options aided by an external consultant.”
Hertsmere Council is set to discuss the report at a meeting next week.
The report shines a light on the varying state of the U.K.’s production facilities. Whilst a number of new studios have sprung up in recent years – including Sky Studios Elstree, just down the road – others require an overhaul. In 2020, Netflix filed a lawsuit against nearby Neasden Studios, where it had been filming “Bridgerton,” citing asbestos and falling ceiling tiles, the Evening Standard reported.
Elstree Studios was founded just outside London in the 1920s and as well as iconic movies such as “Star Wars” and “Indiana Jones” it has in recent years played host to high-end dramas such as “The Crown” and “Gangs of London.”
Hertsmere Borough Council leader Jeremy Newmark told PvNew: “Elstree Studios are thriving and the new Platinum stages opened last summer are a great example of our commitment to the site and our continued investment. It’s also prudent that we look at opportunities to invest in and revitalize other significantly older parts of the site so that we can open up further exciting opportunities for this valuable asset for the borough and its residents. We’ve acted swiftly, decisively and transparently in tabling a set of proposals within seven weeks of our new administration taking office and being informed of these matters.”
“In the past few weeks we have also recruited four new independent non-executive directors to serve on the studio board,” Newmark continued. “They include industry experts and a leading property specialist. They will play a significant role in helping us to move forward. Our report containing these proposals is available on our website. It will be tabled at our Cabinet meeting next Wednesday. This initial action plan will ensure the site remains competitive and aligned with emerging and exciting trends in the industry.”
