TVNZ keen to sell Avalon studios

State broadcaster Television New Zealand wants to sell its landmark Avalon Studios in Lower Hutt.

The move could see popular shows Good Morning and Lotto lost to Auckland. A TVNZ source understood a decision on the studios' future could be just weeks away.

TVNZ spokeswoman Andi Brotherston confirmed yesterday that the studios' future was under review. "Ideally we would like to sell it, but we don't have a buyer. It's not officially on the market.

"We're always looking at reviewing all our assets, and their value to us."

The Avalon Studios complex and 10-storey office tower became a Hutt Valley landmark after opening in 1975 as New Zealand's first custom-built television centre.

TVNZ's move to Auckland began in 1980, when its news service went north.

A TVNZ source said rumours of a sale were gathering pace. "Every single year they consider closing down Good Morning and moving to Auckland and Lotto moving to Auckland. There is definitely more in it [now] than ... there has previously been. Someone said in six weeks' time they'd have a definitive answer. I think it is ... a little bit more definite this time."

Two options were being considered, the source said. "First they'd be a production house and they'd just produce shows. Or it would just become a broadcaster and they wouldn't actually make anything. It would just be a master control room."

The source doubted buyers would line up to buy Avalon. "It would be insanely expensive and it doesn't produce much."

Good Morning was the only profitable show because of "advertorial" content.

TVNZ's website lists four studios available for hire at Avalon. Studio 8 – the venue for Dancing with the Stars – is the biggest digital studio in New Zealand.

Landmark Kiwi shows including What Now and Country Calendar have been produced at the studios.

TVNZ sold part of the Avalon site, including the office tower, six years ago.

The land and tower, then valued at $17.2 million, were TVNZ's headquarters until 1989.

Avalon Studios lost the contract to film children's programme What Now in 2003.

The same year Cloud 9 productions moved to Queensland, taking with it about 180 jobs.

Avalon now has 75 staff, and a capital value of $19.2m.

Lower Hutt Mayor David Ogden – who was TVNZ's head of finance in the 1980s – said he had heard Avalon staff were "unsettled" by the rumours.

"It seems to be all about cash and less about quality.

"What would they replace it with, a giant squash court?"

A spokesman for Sir Peter Jackson said it was the first he had heard of a possible sale and declined to comment.

In 1998 Jackson bought the National Film Unit in Lower Hutt, close to Avalon.

Industry sources at the time estimated the deal cost Jackson between $1m and $3m.

It was later merged into a state-of-the-art post-production facility in Miramar.

TV SHOWS MADE AT AVALON

Country Calendar

Praise Be

Lotto

What Now

Test the Nation

Dancing with the Stars

Good Morning