Aviva Investors buys BBC Worldwide HQ at 3.75% yield

UK-based asset manager Aviva Investors has purchased the new BBC Worldwide HQ, which is located in the first refurbished property at the Television Centre development in White City, London. The investment volume of £67 mln (€93 mln) reflects a net initial yield of 3.75%.

The Aviva Investors Lime Property Fund (Lime) has acquired the leasehold from UK office specialist Stanhope and Japanese developer Mitsui Fudosan.

BBC Worldwide, a commercial subsidiary of British public broadcaster BBC, have agreed a 25-year lease with annual uncapped RPI increases. The property was constructed in 1990 and known as Stage 6, an extension to BBC Television Centre. The building has recently undergone a comprehensive refurbishment.

Lime, launched in July 2004 has over £1.4 bn under management as at April 2015. It is an open-ended fund that generates a secure income return by investing in assets with a high concentration of rents that are either inflation-linked or that have pre-agreed fixed uplifts.

Renos Booth, manager of the Aviva Investors Lime Property Fund, said: 'This is an impressive building with iconic status. White City is undergoing significant regeneration with Television Centre as the centre of gravity. Today’s acquisition provides the opportunity to capitalise on this emerging growth story whilst still in its infancy, to the benefit of our clients.'

The new BBC Worldwide headquarters is the first element to be delivered as part of a major regeneration which will see a further 37,160 m2 of new Grade A office accommodation developed at Television Centre over the next two years.

JLL and Pinsent Masons acted for Lime, and LSH for the BBC. DTZ and Macfarlanes advised the vendors, Stanhope and Mitsui Fudosan in the deal.