Aviva Investors Buys BBC HQ
- May 05, 2015
Aviva Investors has acquired the first phase of the Television Centre redevelopment, a 94,000-square-foot office building located in White City, London.
The Aviva Investors Lime Property Fund purchased the property’s leasehold interest from Stanhope and Mitsui Fudosan for more than $103 million (£67 million), representing a net initial yield of 3.75 percent.
BBC Worldwide, a commercial subsidiary of the BBC, will occupy the recently renovated building under a 25-year lease agreement with annual uncapped RPI increases. Known as Stage 6, the five-story facility was constructed in 1990 as an extension to BBC Television Centre.
“This is an impressive building with iconic status. It is a great addition to our portfolio and will complement the existing assets as we look to generate a secure and predictable income stream for our investors,” Renos Booth, manager of the Aviva Investors Lime Property Fund, said in a news release.
White City is currently undergoing a significant revitalization phase, which revolves around the Television Centre. The new BBC Worldwide headquarters is the first part of the facility’s redevelopment, which will bring an additional 400,000 square feet of office space over the next two years.
According to Alistair Shaw, managing director of Television Centre, the surrounding area’s upcoming projects will include a new Soho House club and hotel, as well as 950 new homes, which “will truly be a core driver for the regeneration of the exciting and up and coming White City area, creating thousands of jobs.”
Launched in July 2004, the Aviva Investors Lime Property Fund has more than $2.16 billion (£1.4 billion) worth of assets under its management.
JLL and Pinsent Masons represented the company in the acquisition, while LSH acted on behalf of the BBC. DTZ and Macfarlanes assisted the vendor, Stanhope and Mitsui Fudosan.