[NEWS] BBC sells Estree Studios

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The bainless beancounters strike again. :-\
Let's sell our property and then lease it back ... yes, you get a big
'cash' injection instantly, but you lose out in the long run due to
ongoing massive rent payments and no income from renting out the spare
studio space to others. This "sell and rent back" approach never ever
works, and yet piles of idiots in charge of companies continue to do it.


'EastEnders' Set Studio Sold and Leased Back
by BBC to Meet Savings Target
--------------------------------------------
The BBC has sold its Elstree Centre property, which includes
the iconic Albert Square set for long-running soap "EastEnders,"
to global investment giant AXA IM Alts.

As part of the transaction, AXA IM Alts will lease part of the
studio campus back to the BBC for 25 years.

"The sale of the Elstree Centre site is part of an ongoing
review of the BBC's property portfolio in order to provide the
best value for licence fee payers," BBC CFO Alan Dickson said.
"As part of the sale, the 'EastEnders site' has been secured on
a long-term lease and Elstree will continue to be the home of
Albert Square."

A transaction value was not disclosed but the BBC aims to secure
£70 million (US$89 million), Variety understands. The BBC
completed the rebuild of the Albert Square set two years ago four
year late and at £87 million, £27 million over budget.

The deal has taken place at a time when the BBC is looking to
find significant annual savings, currently estimated at
£500 million. In August 2023, the historic Maida Vale Studios in
London was sold by the BBC to a four-way partnership between
Working Title chairs Tim Bevan and Eric Fellner and two-time
Oscar winner Hans Zimmer and his business partner Steven Kofsky.

In December 2023, the U.K. government raised the BBC's annual
license fee - where the bulk of the corporation's income comes
from - by £10.50 to £169.50, lower than what the corporation
expected, causing a funding gap of £90 million.

The Elstree acquisition is AXA IM Alts' first investment into the
U.K.'s TV and film studio market and was undertaken on behalf of
clients. It follows the investment company's acquisition of one
of France's largest studio complexes, the Bry-sur-Marne studios,
in 2023.

John O'Driscoll, global co-head of real estate at AXA IM Alts,
said: "With the signing of BBC Elstree Centre we will be
acquiring one of the oldest working TV and film studios in the
U.K., with a history dating back almost 110 years. The structure
of the transaction allows the BBC to continue its production on
the site for at least another 25 years, while providing us with
the opportunity to invest in the site to create new world class
studios. The whole area has a long and illustrious history of
producing some of the world's most celebrated films and
television series and, under our stewardship, we aim to continue
that legacy.

"The TV and film studios sector remains one of our conviction
asset classes, being underpinned by increasing demand from an
ever-broader array of production houses, content creators and
broadcasters. This is coupled with very limited supply of
high-quality modern film and production space, particularly in
and around London where new construction is hindered by a lack of
available land in the right locations."


<https://variety.com/2024/tv/global/eastenders-set-sold-bbc-1235876024/>