Blackstone Group Inc. and Hudson Pacific Properties will spend more than 700 million pounds ($974 million) to build a film studio north of London, taking advantage of a shortage in production capacity after streaming services ramped up demand for original content.

Blackstone and Los Angeles-based studio operator Hudson Pacific bought the 91-acre (368,260 square-meter) site in Hertfordshire for 120 million pounds, the companies said in a statement on Sunday. Blackstone plans to make it an expansion of the partners’ Sunset Studios business.

The companies plan to lease the studio to production companies working with streaming businesses and broadcasters. The firms are capitalizing on a shortage of production capacity in the industry, as businesses work to develop more original content to attract and maintain subscribers. Sunset Studios’s production lots in Hollywood have been host to films and television shows including “La La Land,” “X-Men,” “Hannah Montana” and “Karate Kid.”

Read more/Source: Bloomberg