British pubcaster finds developer/manager
LONDON — The BBC has green lit its ambitious property development plans through a management deal with real estate group Land Securities Trillium.
Trillium has been awarded a contract to manage the BBC’s existing properties and to develop another 550,000 square feet of space for the pubcaster.
Over the next two years, Trillium will invest £220 million ($325 million) in the expansion of the BBC’s White City site in west London. A music center and an additional six buildings will be built.
In addition, Trillium is making a one-off payment of $51 million to the BBC, which will go towards programming.
For its part, the BBC will pay Trillium $51 million per year to manage its properties until 2003, when the development will be complete. After that, the BBC will pay $102 million a year.
The value of the deal is roughly $3 billion over 30 years, considerable less than the Beeb would spend if it continued to manage its properties itself.