Zareh Nalbandian wants to make Peter Rabbit 3 in Sydney, but if his home town does not get a second film studio soon he might be forced to shoot it elsewhere.

The warning from the founder of the Animal Logic animation studio, maker of the first two Peter Rabbits, came after the NSW government on Sunday pledged $100 million to build an alternative to Moore Park’s Disney Studios, amid evidence Sydney’s lack of sound stages was threatening its status as Australia’s screen capital.