Business | Investment
Hollywood Studios set to raise $500m
Hollywood Studios International signed an agreement with Norris 76 and Madison, an entertainment holding company, to act as consultant in raising $500 million, part of which will be invested in a Dubai facility, a top official said.
- By Maey El Shoush, Staff Reporter
- Published: 00:00 March 6, 2007
Dubai: Hollywood Studios International (HSI) signed an agreement with Norris 76 and Madison, an entertainment holding company, to act as consultant in raising $500 million, part of which will be invested in a Dubai facility, a top official said.
The company recently increased its activities to develop projects in the UAE and other parts of the region in the form of management, production and international distribution.
HSI's business model features many projects, including a TV show featuring Hollywood stars Jesse Metcalfe and Mos Def, and the director of the award-winning TV series 24. It is currently being developed for production in Dubai or Rio de Janeiro, Brazil.
An international music event is also being considered for live broadcast from Dubai, Abu Dhabi or Qatar.
CEO of HSI, Steven Saxton, said Stephen L Norris will assist the company in the structuring and sourcing of the capital. He added that the alliance will boost the Middle East entertainment industry.
These funds will also be used to expand the company's US operations in Beverly Hills, New York and Miami and planned international operations in Dubai, Moscow, London, Beijing and Sao Paulo.
During his tenure in the investment business, Norris has directed or participated in more than 125 leveraged buyouts, venture capital and real estate equity investments totalling more than $6 billion, and yielding an average annual internal rate of return of over 38 per cent.
Norris told Gulf News that the HSI business model aims to cross cultural lines and scale without limitation.
"Combining fee-based elements and building a financing structure that is not driven by high risk equity makes HSI one of the first companies that will capitalise globally as international consumers and artists grow in market share," said Norris.
"As entertainment becomes less centralised in the United States, only those companies that can adapt and perform in a multitude of niche markets will survive."
The financial adviser has also structured and negotiated investments totalling more than $1 billion on behalf of a prominent Middle Eastern investor in Citicorp, Euro Disney, and the Four Seasons Hotels and Resorts.
These investments have returned well over $10 billion. Furthermore, Norris also served on the board of directors of major Carlyle Group investments.
The partnership with HSI also calls on Norris to assist in defining plans for structuring the participation of strategic partners.
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