Land Securities Group PLC announced that Land Securities Trillium has completed the sale of its interest in Media Village, White City to facilitate an asset backed bond issue by a new landlord that will provide the BBC with a lower cost of occupation given the favourable bond markets.
The property was sold for just over Â£340 million with proceeds of Â£321.5 million being received by Land Securities Trillium. The balance of the sale proceeds has been paid to the BBC in respect to a payment due to the BBC for its carried interest in the site. As a result of the sale the unitary charge paid to Land Securities Trillium will reduce by some Â£26m per annum.
Following completion of the sale, the BBC and Land Securities Trillium are working together to review the revised structure of the contract and the current facilities management services provided to the BBC across its London and Scottish Estates. Land Securities Trillium will continue to manage, under separate agreements with Land Securities, the BBC developments at Broadcasting House, London W1 and Pacific Quays, Glasgow.
Commenting on the transaction, Ian Ellis, Chief Executive, Land Securities Trillium said,
âThe strength of the property outsourcing solution is our ability to work with our partners to refine and review contracts as they progress. With strong funding markets and a successfully completed project it made perfect sense to sell Media Village to benefit the BBC and us. We recycle our capital efficiently while the BBC achieves a lower cost of occupation in the new state-of-the art broadcast facility which we developed on time and to budget.â
Source: Land Securities