Khazanah maintains stake at Iskandar Malaysia Studios but sells operator shares

State-owned investment fund Khazanah Nasional has handed over its shares in Iskandar Malaysia Studios' (IMS) studio operating company to local management team Studio Management Services (SMS) to provide more job opportunities locally.

Currently, IMS, which occupies 19.8 hectares of Iskandar Puteri, Johor, remains to be owned by Khazanah through Tanjung Bidara Ventures, the investment fund’s special-purpose vehicle, according to Deputy Finance Minister II Steven Sim Chee Keong as quoted in Bernama.

Minister Sim clarified that Khazanah Nasional only disposed of shares in the studio’s operating company to find a new partner which could better manage the studio.

Don't miss: SG-based GHY Culture buys majority stake in Iskandar Malaysia Studios

He cited financial sustainability challenges that were worsened by the impact of the Covid-19 pandemic as a key factor in the selling of operator shares during the question-and-answer session in the Dewan Rakyat on 13 June 2023.

Khazanah Nasional would stand to lose an estimated RM14 million per year if it continued providing financial support to operate IMS, explained Minister Sim.

He also shared that Khazanah Nasional had selected SMS as the new partner and with a goal of generating a potential revenue of RM800 million in five years through the entry of new productions for the studio to positively impact the local economy.

The transaction of IMS’s operator shares potentially allows Khazanah to gain RM32 million as well as an estimated total rental payment of RM26 million until 2036.

SMS is a consortium led by IMS’s current Malaysian team in partnership with Singaporean entertainment company, GHY Culture and Media.

This news comes after Khazanah Nasional’s special purpose vehicle, Granatum Ventures was recently confirmed to be divesting its shares in IMS to SMS.

This sale aimed to catalyse further growth and development of the ecosystem in IMS. Additionally, it had the potential to rake in foreign investment due to its larger capacity to rake in bigger productions which would contribute to higher utilisation of the studio by regional and global players.

The press statement also posited that statement the sale will be for a 100% stake in IMS which is leasing the land where the studio premises are located from Tanjung Bidara Ventures, which is another special purpose vehicle of Khazanah.

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