For a mere $43,000, you too can help complete the construction of Minas Tirith.
Hollywood studios are always seeking to minimize their financial risks — including seeking outside financing to help bear the the tremendous costs of film production. New Line Cinema‘s Lord of the Rings films are no exception. Curiously, the reported total amount of the fund to cover the filming of The Return of the King, US$150 million, is more than half of the three films’ total budget.
German fund seeks Hobbit investors
by Ed Meza
BERLIN (Variety) – A German investment company is offering local investors with at least $43,000 to spare the chance to share in the magic and glamour of Hollywood.
Hannover Leasing is establishing a DM350.5 million ($150 million) fund to finance The Return of the King, the third installment of New Line Cinema’s $270 million Lord of the Rings Hobbit trilogy.
Such investment schemes are usually offered toward the end of the financial year to high-bracket earners looking to bring down their taxable income.
Germany’s tax authorities are busy rewriting investment regulations to shore up tax revenue lost to such funds, which will not be available after this year. While media funds will continue to be offered, they won’t provide the lucrative tax havens they do now. Last year nearly $1.5 billion was raised through private media funds.