U.K.-based VFX and feature animation studio Cinesite has opened a 54,000 square-foot animation studio in Montreal, which it says will have the capacity to employ 500 permanent staff by 2020.

Cinesite is currently aiming to produce nine feature films out of the new studio over the next five years. Investissement Quebec, on behalf of the Quebec government, is advancing a loan of $2.4 million to support production infrastructure at the new studio. An additional loan guarantee of $19.6 million towards an overall budget of $90 million is also being advanced to Cinesite to help finance the first three features to be produced out of the studio.

Cinsite’s Comic Animations division, SPA Studios and Atresmedia Cine will coproduce the first project to come out of the new facility, Klaus. The holiday film will be written and directed by Sergio Pablos and produced by Jinko Gotoah. Comic Animations and and Dublin-based River Productions are also currently developing an animated feature inspired by the stage production Riverdance that will also feature music from the show.

The opening of the larger animation studio builds upon an announcement last fall that Cinesite was opening a new division at its Montreal VFX facility to produce family-targeted features for 3QU Media.  3QU Media is an CG-animated feature film producer lead by Shrek franchise producer John Williams and Henry F. Skelsey, managing partner at Fulton Capital Management LLC. The first film from that four-slate deal with 3QU Media is Charming, starring Demi Lovato and Avril Lavigne. Charming will be released later this year.