Spain’s SETT, South Africa’s KAG Launch $28.5 Million Audiovisual Venture

The public-private partnership will establish a Madrid production company and post-production studios in the Canary Islands and Basque Country

The public-private partnership will establish a Madrid production company and post-production studios in the Canary Islands and Basque Country

Spanish state investment vehicle SETT and South Africa’s Known Associates Group are teaming on a major audiovisual venture in Spain, encompassing a Madrid-based production company and post-production studios in the Canary Islands and Basque Country.

SETT, the investment arm of Spain’s Ministry for Digital Transformation, will commit €12.7 million ($14.5 million) to two public-private ventures valued at a combined €25 million ($28.5 million). blogherads.adq.push(function () { blogherads .defineSlot( 'medrec', 'gpt-variety-article-mid-article-uid0' ) .setTargeting( 'pos', ["mid-article1","mid-articleX","mid","mid-article"] ) .setTargeting( 'viewable', 'yes' ) .setSubAdUnitPath("ros\/mid-article") .addSize([[300,250],[2,2],[300,251],[2,4],[4,2],[320,480],[620,366]]) .setClsOptimization("minsize") ; });

The first operation will see SETT committing $10 million to Moonlighting Studios Spain, the local arm of South African production-services heavyweight Moonlighting Films . The company will receive a total capital injection of $20.5 million to establish a production base in Madrid focused on developing projects and creating intellectual property. Popular on Variety if ( !window.pmc.harmony?.isEventAdScheduledTime() ) { pmcCnx.cmd.push(function() { pmcCnx({ settings: { plugins: { pmcAtlasMG: { iabPlcmt: 2, } } }, playerId: 'fdaee7b3-292f-4a85-89bb-29a56b567de3', playlistId: '019eb8f5-8351-7af5-8dd4-29ad0d5ed821', }).render("connatix_contextual_player_div"); }); } else { // This should only be get called when page cache is not cleared and it's event time. window.pmc.harmony?.switchToHarmonyPlayer(); }

The Madrid venture is expected to produce 10 feature films and documentaries. Moonlighting has provided production services on major international titles including “Mufasa: The Lion King,” “Mad Max: Fury Road,” “The Woman King,” “Mission: Impossible – The Final Reckoning” and Netflix’s “Resident Evil” series.

A second transaction will see SETT invest $4.4 million to take a 49% stake in the Spanish division of South African post-production company The Refinery . The company will receive a $9.1 million capital injection and establish facilities in the Canary Islands and Basque Country, the two parts of Spain with the most muscular tax incentives for production.

The two sites will operate as an integrated post-production platform intended to retain more audiovisual work, spending and creative control in Spain rather than outsourcing those services abroad. blogherads.adq.push(function () { blogherads .defineSlot( 'medrec', 'gpt-dsk-tab-mid-article2-uid1' ) .setTargeting( 'pos', ["mid","mid-article2","mid-articleX"] ) .setTargeting( 'viewable', 'yes' ) .setSubAdUnitPath("ros\/mid-article2") .addSize([[320,480],[300,250],[300,251],[2,4],[4,2],[620,366]]) .setClsOptimization("minsize") ; });

“We will continue this investment effort because it is very profitable for the country. The audiovisual industry is cultural; it is not only about the economic value and employment it generates,” Digital Transformation Minister Óscar López said.