Today, the BBC and a consortium of Stanhope, Mitsui Fudosan UK and Alberta Investment Management Corporation (AIMCo) completed the sale of BBC Television Centre in West London.
The sale follows a year-long selection process. 240 expressions of interest were whittled down to six shortlisted bids which were tested against the BBC’s three key objectives: maximising the value of the site for Licence Fee payers; protecting the legacy of this iconic building and choosing a buyer that could deliver.
Stanhope has bought the site for guaranteed consideration of £200m. The BBC will also benefit from future overage payments.
Stanhope Plc’s funding partners in the transaction are Mitsui Fudosan and the Alberta Investment Management Corporation (AIMCo), who are both blue-chip, well-funded and experienced development partners.
The sale is part of long-term plans to reduce the size of the BBC’s property portfolio by 30 percent. The proceeds from the sale, together with the end of running costs for the site will contribute towards the BBC’s target of achieving annual savings in property expenditure of £47m pa by 2016/17.
Future of the Site
Stanhope has acquired a long leasehold interest in BBC Television Centre. The BBC and Stanhope will work together on the initial planning and development, and the BBC will retain a continued presence at Television Centre.
The BBC public service divisions will be remaining on site until staff have been relocated and the technology infrastructure has been completed.
The BBC’s commercial arms BBC Studios and Post Production and BBC Worldwide will lease refurbished office and entertainment space in the completed scheme from 2014/15 and will be amongst the first parts to go-live at the re-purposed site.
Following temporary relocation, BBC Studios and Post Production will operate studios for television production, including the famous Studio 1.
BBC Worldwide will move from its current base in the W12 Media Village to become anchor tenants on the site, and will be located at the front of the building overlooking Wood Lane. BBC Worldwide is in the process of appointing its architects.
Wider plans for the site will include a vibrant mix of uses (leisure, office, residential) and opening up the site as envisaged in the GLA’s White City Opportunity Area masterplan. Discussions will continue with the planning authorities.
The listed elements of Television Centre will be retained and enhanced, including the instantly recognisable exterior view.
Allford Hall Monaghan Morris (AHMM) are the appointed architects for the wider plans. Previous projects have included the Saatchi Gallery, the Barbican Arts Centre and Angel Building, which was shortlisted for the RIBA Stirling Prize in 2011.
BBC Chief Operating Officer Caroline Thomson, who oversaw the sale, says: “This is an exciting deal both for the BBC and for London. Working with Stanhope we will build a new creative hub in west London. It marks a critical step in the transformation of the BBC’s property portfolio and the delivery of great value to Licence Fee payers.
"Stanhope has considerable experience in completing high profile UK development projects and we are looking forward to working in partnership with them on the future of Television Centre.”
David Camp, chief executive of Stanhope Plc, says: “We are looking forward to working with the BBC to deliver a vibrant, mixed-use scheme for the Television Centre site. We will preserve and enhance the much loved iconic buildings surrounding the forecourt for workspace, hotel and residential uses.
Over the past year a great spirit of partnership has developed between the BBC, Stanhope and our partners, Mitsui Fudosan and AIMCo. This gives us great confidence that we will achieve our joint objective of building upon the site’s history and legacy to evolve an exciting future for Television Centre which we can all be proud of.”
'Hideto Yamada, Managing Director of Mitsui Fudosan UK, says: "We are tremendously honoured to be entrusted with this truly iconic estate, a project which suits Mitsui Fudosan's philosophy and experience of preservation and revitalisation. We look forward to collaborating with our partners and the BBC to create an exciting community and business hub, which will hopefully benefit all stakeholders and enhance the colourful legacy of the Television Centre.”
BBC Press Office
For further questions about Stanhope please contact Ian Lindsley on 020 7256 8912 or firstname.lastname@example.org
Notes to Editors
Chris Kane, Director TVC Sale, was the Project Manager for the sale, and Dominic Coles, Chief Operating Officer BBC News Group, Nations and London 2012, was the Lead Negotiator.
Lambert Smith Hampton were appointed to market the property in 2010 and supported the BBC throughout the market testing process. Morgan Stanley provided the BBC with financial advice whilst Hogan Lovells were the BBC's legal advisors.
Stanhope Plc creates and delivers major commercial and mixed use developments in London and the South East. The company is known for the quality of its research, for driving excellent design and for innovative responses to occupier requirements. Stanhope has over 30 years’ experience as developer, development partner and development manager. During this time it has been wholly or jointly responsible for the delivery of commercial projects in excess of £10bn of commercial value. Recent projects include Central Saint Giles, 23 Savile Row and AirW1, as well as headquarter offices for NM Rothschild and Unilever.
BBC Worldwide Limited is the main commercial arm and a wholly owned subsidiary of the British Broadcasting Corporation (BBC). The company exists to exploit the value of the BBC’s assets for the benefit of the licence fee payer and invest in public service programming in return for rights. The company has five core businesses: Channels, Content & Production, Sales & Distribution, Consumer Products and Global Brands. In 2011/12, BBC Worldwide generated headline profits of £155 million on headline sales of £1085 million and returned £216 million to the BBC. For more detailed performance information please see our Annual Review website: http://www.bbcworldwide.com/annualreview
BBC Studios and Post Production is a commercial subsidiary of the BBC, providing world-class studios, post production and digital media services. It works with broadcasters and media companies, making content for BBC, ITV, Channel 4, Five and Sky, from the award-winning Harry Hill's TV Burp and Deal or No Deal, to EastEnders and Strictly Come Dancing. It also preserves, re-masters and manages content through its digital archiving, restoration and distribution services and creates high-end visual effects.
Mitsui Fudosan UK is a wholly owned subsidiary and the European arm of the Mitsui Fudosan Group, one of the world’s largest property companies with total assets of circa US$30 billion and assets under management of circa US$20 billion.
The Mitsui Fudosan Group, based in Tokyo and listed on the Tokyo Stock Exchange, is Japan’s leading property company with a comprehensive and fully integrated range of property related businesses including investment, trading, development and asset management. The company is renowned as a pioneer of innovative development schemes and real estate services, and has delivered award-winning office, retail, residential and mixed-use schemes.
This is an exciting deal both for the BBC and for London. Working with Stanhope we will build a new creative hub in west London. It marks a critical step in the transformation of the BBC’s property portfolio and the delivery of great value to Licence Fee payers."