Manchester to sell Space Studios at ‘opportune time’ 

Located in West Gorton, the 200,000 sq ft film and tv studio complex is to be sold via a 250-year lease to a private sector landlord as the risks of investing in the sector rise.  

Now is considered to be an “opportune time” to sell Space Studios, according to a report to Manchester City Council’s executive. 

The sale would “displace the financial risk associated with [the studios’] operation, secure the commercial and operational input of a large-scale credible operator, and ensure the future viability of the studio”, the report states. 

The financial risk of owning a facility like Space Studios comes from fluctuating levels of occupation, the increasing competitiveness of the market, and rising rateable values of this asset class. 

“From 1 April 2023…the rateable value for Space Studios will increase from £645,000 to £1.6m,” the report states. 

A private sector owner-operator would bring the “commercial acumen that will help the studios attract even more productions to Manchester”, according to the city council. 

The executive is expected to sign off the sale of Space Studios to an unnamed private operator this week. 

Manchester City Council has owned Space Studios since 2014 when development began. At present, the facility consists of six stages and ancillary facilities, used by the likes of Netflix and Amazon, and is operated by Manchester Creative Digital Assets. 

Plans to expand the complex across two further phases are also in the pipeline. It is thought the sale could speed up the delivery of future phases. 

The next phase of Space Studios would see an additional 70,000 sq ft of facilities added. Plans for this scheme were approved last year. 

Manchester City Council’s acquisition of a nearby plot of land known as The Yard last year could also facilitate another expansion in the future.