BBC sells Elstree studio to French company

AXA Investment Managers, the investment arm of leading French insurance company AXA, will buy renowned Elstree studio complex from the BBC. The deal, valued at £70 million, is set to provide a significant financial boost to the BBC.
Situated on a sprawling 16-acre site near Watford, north-west of London, the Elstree studio complex has been a hub for UK television and film production for over a century. The acquisition aligns with AXA's strategic focus on prime real estate investments, particularly in film and TV production spaces near major urban centers.
As part of the agreement, the BBC will enter into a 25-year leaseback of a portion of the facilities, ensuring continuity in its operations and the continued filming of popular soap opera EastEnders at the Elstree location. The deal is expected to reach completion early next year.
Alan Dickson, Chief Finance Officer at the BBC, stated that the sale of the Elstree Centre is part of an ongoing review of the BBC’s property portfolio to provide the best value for license fee payers." This move comes as the BBC faces financial challenges, having experienced a freeze in the license fee and the need to implement cost-saving measures.
AXA Investment Managers, recognizing the potential of the Elstree studio complex, is finalizing plans to invest in expansion and additional support facilities. Despite industry-wide pressures on production budgets, AXA remains optimistic about the demand for reliable studio spaces.
John O’Driscoll, Global Co-Head of Real Estate at AXA Investment Managers, said that this is possibly the most established studio location in the UK. "We like the idea of something that works, but also something that can be improved."
The Elstree deal underscores the increasing investor interest in the UK's studio sector, which has become integral to the global film industry. With advanced film technology, a skilled workforce, and attractive tax incentives, the UK continues to attract major players in the entertainment industry.