The BBC has made a significant move in its ongoing efforts to improve financial efficiency by selling its Elstree Centre property, which includes the famous Albert Square set used for the long-running soap opera “EastEnders.” The buyer, global investment giant AXA IM Alts, will lease part of the studio campus back to the BBC for the next 25 years.
A Strategic Decision for the BBC
According to BBC CFO Alan Dickson, the sale of the Elstree Centre site is part of the broadcaster’s wider review of its property portfolio, aimed at providing the best value for license fee payers. While the transaction value has not been disclosed, sources suggest that the BBC hopes to secure £70 million ($89 million) from the sale.
The timing of this deal aligns with the BBC’s need to find significant annual savings, estimated at around £500 million. In recent years, the public broadcaster has been forced to make tough choices to meet its financial targets. This includes the sale of other valuable assets, such as the historic Maida Vale Studios in London in 2023.
AXA IM Alts Enters the U.K. Studio Market
This acquisition marks AXA IM Alts’ first foray into the U.K.’s TV and film studio market. The investment giant, acting on behalf of its clients, previously acquired the Bry-sur-Marne studios in France in 2023. John O’Driscoll, global co-head of real estate at AXA IM Alts, expressed excitement about the BBC Elstree Centre deal, highlighting the site’s rich heritage in the TV and film industry. The transaction ensures that the BBC can continue production on the site for at least another 25 years, while also paving the way for investments to create state-of-the-art studios.
“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,” said O’Driscoll. He further emphasized the limited supply of high-quality modern film and production space in and around London, making this acquisition a valuable addition to AXA IM Alts’ portfolio.
As fans of the popular soap opera eagerly await further developments, the sale of the EastEnders set studio underscores the BBC’s commitment to adapt and optimize its operations while continuing to deliver engaging content to audiences. With AXA IM Alts’ involvement, the future of Elstree Centre looks promising, ensuring that the site’s legacy as a hub for world-class television and film production will be upheld for years to come.
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