15 ENE 2021

HIG PARTNERS WITH ROOTS GROUP AND ACQUIRES 40% OF MADRID CITY CONTENT

Grupo Roots develops the largest production hub in Spain, an audiovisual business park of more than 140,000 square meters that will operate at full capacity in the first quarter of 2023.

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Roots Group, a business made up of the five companies developing the Madrid Content City project, takes another step forward in strengthening its financial position thanks to the new partnership between HIG REal Estate and the company led by Raúl Berdonés and Pablo Jimeno. The international investment firm with a presence in the United States, Latin America and Europe has acquired a significant stake thanks to an equity offering in the group dedicated to building and developing audiovisual business parks.

"HIG's entry in the capital bolsters confidence in the path taken by Roots Real Estate in its efforts to launch a business park such as this, a production centre that was born in a favourable scenario for the Spanish audiovisual industry, and which has become an international benchmark thanks to the global success of fiction. This partnership also represents financial recognition in terms of consolidating the group and attaining future projects in Spain and Latin America," said Raúl Berdonés, President of Roots Real Estate.

"We are very pleased with the partnership with Roots Group, which will boost the development of Madrid Content City and allow us to make full use of opportunities in the audiovisual sector, as it continues to experience strong demand for content production thanks to the global success of fiction. We would like to thank Roots Real Estate for placing its trust in HIG, and we are convinced this new partnership will ensure we continue to grow together in the professional management of audiovisual spaces," commented Esteban Caja Samboal, head of HIG Real Estate in Spain.

This agreement means Roots Group can move forward in developing the largest audiovisual production hub in Europe, with facilities covering over 140,000 sqm. Each of the five companies will develop one phase of this ambitious project, which will bring together twelve studios, three office buildings with over 10,000 sqm of floor space, a university for 7000 students, a student residence with more than 250 beds, five restaurants, eighteen auxiliary units, a commercial area covering 4000 sqm, a service station, complementary services, and an auditorium.

The first phase of Madrid Content City, covering a total of 22,000 sqm, is now up and running with five fully equipped, operational studios (three studios covering 1200 sqm, and two covering 1500 sqm each), along with office buildings, a post-production centre and an auditorium, without forgetting Secuoya Group's own facilities; it is also where one of the world's leading platforms is located, in order to produce its content in Spain. The number of sets will increase up to ten in the second phase, covering over 45,000 sqm. A new 2000 sqm set and four 1500 sqm sets are currently under construction. The site also includes eighteen auxiliary units, parking spaces with a full range of services, and a 2500 sqm area for restaurants and leisure, which will see the start of start operations in September 2021.

This second part of the project will be fully finished in the second quarter of 2022. Moreover, work is under way on phase III, with a total of 69,000 sqm dedicated to the construction of a university campus led by Planeta, ready to accommodate 7000 students. This university space will also include a range of auxiliary services such as a student residence with more than 250 beds, three office buildings, a commercial area, a service station, restaurants, and two fully equipped 1200 sqm production sets, which round off this ambitious business complex.

Once all phases have been completed, the Tres Cantos complex will be the second-largest production centre in Europe, after Pinewood (UK). Madrid Content City will bring together training, industry, business, commerce and a full range of services for everybody working or studying there, placing it at the epicentre of the industry and business development.

The Tres Cantos complex will also be a benchmark in Europe and the United States thanks to its state-of-the-art connectivity, the use of renewable energies, and complete integration within the urban development area, with full respect for the environment at all times. In this regard, it is important to note that all studios will have fibre-optic connections, thus ensuring the work flow in 4K HDR.

The entry of HIG means Roots Group counts on the resources necessary to continue to develop complexes of similar characteristics not only in Spain, but also around Europe, Latin America and the United States, all with a view to becoming a major player in the management of audiovisual business parks.