Stanhope, Mitsui scoop BBC's Media Village for €118m

UK property firm Stanhope and Japanese developer Mitsui Fudosan have emerged as the buyers of the BBC's Media Village site in west London which they plan to expand and redevelop in the near future.

Under the terms of the deal, UK broadcasting group BBC will receive £87 mln (€118 mln) for the sale of four acres of freehold land and the lease of six buildings, three of which will continue to be leased back and occupied by the BBC and three will be sub-let.

The three buildings being vacated - White City One, Media Centre and Garden House - will be fully refurbished and brought back to the market from late 2016. The buildings offer 600,000 sq ft (56,000 m2).

Stanhope and Mitsui plan to undertake major landscaping and infrastructure works and intend to submit a planning application later this year for new office development on the southern gateway entrance site. Allies and Morrison have been appointed as architect to masterplan the site.

'White City Place will become the commercial heart to White City. Together with Television Centre, we will be delivering close to two million sq ft of office space and nearly 1,000 new homes over the next five years,' said David Camp, chief executive of Stanhope.

Hideto Yamada, managing director of Mitsui Fudosan UK, added: 'The White City Opportunity Area covers 110 hectares which will see a significant and exciting amount of development come to fruition over the coming years, ensuring a full transformation of the area. We are delighted to add this iconic asset to our growing London portfolio; the acquisition reflects Mitsui Fudosan’s long-term commitment to expand our investment strategy to strong markets outside of Japan.'

The announcement is the latest in a series of property moves which should allow the UK broadcasting group to save in excess of £75 mln a year on property costs by 2017. Last year, the group sold its Television Centre for £200 mln and began marketing White City One in March 2013. In total, the BBC estate has been reduced from 213 buildings (640,000 m²) to 154 (389,000 m²) since 2011.

Anne Bulford, managing director of finance and operations for the BBC, said: 'The BBC is determined to work out of the minimum number of buildings possible whilst still representing the audience it serves.'