A measured and sustainable approach to financing the project
AURORA will invest in buildings and lease to an operating company (OpCo). The plan assumes that AURORA will be able to finance further build-up following Phase 1 with limited additional equity injection. Almost all financing in Phase 2 and 3 will then be raised from the operation and by adding debt.
The capital structure in Phase 1 (D/E = 60/40) is expected to support the build up and showcase how the operation will become profitable and able to finance the construction in Phase 2 and Phase 3.
Development into Phases 2 and 3 will be less costly as the land has been acquired in full in Phase 1 and supporting space such as for offices, mill and props&equipment will not have to be increased proportionally.
THE COST
Total cost of Phase 1 is $79 million - considerably less per square meter than comparable studio development projects in Europe and North America.
In the base plan the project is divided into three phases. The construction time for the first phase is estimated 18 months.
The second phase could start as the first phase is up and running. This will enable the construction cost to be financed with limited equity injection.
The Phase 1 capital structure is planned to be approximately 60/40 debt to equity. As the studios are up and running, generating income, we plan the debt to equity ratio closer to 70/30 financing in Phase 2 and Phase 3.
Breakdown of SQFT, buildings
Sound stages
Offices and service building
Mill
Props and Equipment
Total
Accumulated size in SQFT
43.056 86.112 150.696
32.292 43.056 86.112
16.146 26.910 26.910
32.292 32.292 64.584
123.786 188.370 328.302
USD/SQFT
$516
$275
$344
$344
Total SQFT 328.302
820.755
137.026
USD/ISK=135
Land utilization:
SQFT built
Estimated land use
Land for further development
SQFT pr. phase
123.786 64.584 139.932
309.465 161.460 349.830
648.316 486.856 137.026
AURORA'S ACTUAL SITE
PHASE 1
m
2
SQFT
Sound stage 1
Sound stage 2
Production support
Mill / Equipment / Props
Total
2.000
2.000
3.000
4.500
11.500
21.528
21.528
32.292
48.440
123.788