Multimillion-dollar virtual production studio setting up in Queenstown

Nicole Mathewson Reporter from Otago News

From reporter Debbie Jamieson:

A multimillion-dollar digital studio will be a cornerstone tenant in a $45 million Queenstown research and innovation facility.

The New Zealand arm of United Kingdom-based Target3D will construct its first studio on the ground floor of the building, director Shannon Dowsing announced on Friday.

The company specialises in motion capture and virtual production used in film and television as well as high performance sport, robotics and biometrics.

Recent projects include Bjork’s music videos, an augmented reality performance by singer Liam Payne at the 2021 Bafta awards and Clays, a UK-string of virtual reality clay bird shooting themed bars.


After working with the company directors in London Dowsing established sister company Rāngai in his home town of Tairāwhiti Gisborne, to train students in virtual production, and enable the establishment of Target3D.

The Research and Innovation Queenstown hub developers approached him to consider basing the business there, which also enabled the company to secure a $2m government loan to get established.

The funding came from the $18m Queenstown Economic Transformation and Resilience Fund set up to diversify the local economy beyond tourism, increase economic resilience and develop high paying jobs.

Economic and Regional Development Minister Stuart Nash also announced a loan of up to $1.25m to Loaded Reports Ltd, a Queenstown-based software company that specialises in hospitality management, on Friday.

Founded by James Arnott and Richard McLeod in 2004, the company has 13 hospitality outlets across New Zealand and 900 software customers.

It is planning to enter the Australian market next year, having raised $3.25m of equity and debt including the government loan and support from investment fund Invest South.


Research and Innovation Queenstown is in the early stages of constructing a 5400sqm building as a base to attract, enable and facilitate research and innovation activities and companies to diversify Queenstown’s economy.

It includes office space, networking areas and complementary commercial uses such as recreation, film and visual presentation theatres.

The $45m building attracted a loan of up to $22.5m from the Government’s shovel ready infrastructure fund.

The idea of the digital studio project within the Queenstown hub was initially conceived by local technology entrepreneur Rod Drury, who said it was great to see it come to life.

“I'm very excited about the educational aspects of this facility and the opportunities it will create for learning providers in Southern Lakes,” he said.


Target3D co-founder Allan Rankin said it was exciting to bring the studio to New Zealand.

“Due to the boom in demand for virtual technology, we expect the space to be in strong demand from creatives and industry, but also as a centre for R&D and learning.”

Dowsing said the total project would cost about $6m and probably employ six people as core staff but up to 45 people during production periods.

It would be useful to educators, filmmakers, game designers, and content creators, he said.

He expected it would be operational early in 2024 with a full list of projects ready to go.

There were already projects being discussed, but he could not give details of those due to commercial sensitivities.

Nash said the studio would provide diversification within the screen industry in a district better known for location shoots than in-studio screen production.


“The studio will include infrastructure to support virtual production which includes LED screens, motion capture, game engine servers, lighting, production equipment and staging.

“This will provide access for filmmakers, game designers and television producers to the latest technology.

“It also aims to encourage screen production companies to remain in the district for longer periods, therefore increasing district and regional spend,” he said.


Nationally the screen industry employs about 16,200 New Zealanders and contributes $3.3 billion to the economy annually.

Research and Innovation Queenstown director Johnathan​ Chen said the studio would be a key tenant and a focal point for collaboration.

“This studio creates multidisciplinary collaboration to provide innovative solutions across a number of industries, such as film, gaming, IT, tourism and even future cities.”