King Street Capital Management, Alberta Investment Management Corp. and a sovereign wealth fund have formed a joint venture alongside East End Studios to acquire and develop class-A production studios. The investment strategy aims to meet the escalating demand for production space in Los Angeles.

The strategy will target the redevelopment of existing facilities, along with development opportunities. The joint venture currently has three projects under construction in the Los Angeles area representing a total capitalization of $500 million and more than 750,000 square feet of studio space. Two of the studio projects are located in Glendale, and the other is in Downtown Los Angeles.

David Walch, a partner at King Street, said that the company is attracted to the supply-demand imbalance in the studio market, while Ian Woychuk, director of real estate at AIMCo, noted that the streaming wars have continued to new demand. Both King Street and East End Studios have experience in the entertainment real estate space.