BBC sells EastEnders’ Albert Square studio complex in bid to raise funds for cash-strapped broadcaster

The BBC is selling the studio complex that is home to soap opera EastEnders in a bid to raise money for the cash-strapped broadcaster.

The Elstree Studios complex is being sold to French insurance company Axa, providing the BBC with a £70m financial boost.

The BBC bought the 16-acre site in 1984 to serve as the setting for EastEnders, which debuted in February 1985.

The new deal sees Axa rent part of the studio back to the BBC, so that they can continue filming the soap there.

The BBC has been struggling financially since the government froze license fees for two years in 2022 due to inflation and imposed a cap on increases from April.

The license fee was due to increase by 9%, but will now increase by 6.7% to £169.50.

BBC director general Tim Davie has already made program cuts, including cuts to its flagship news program Newsnight.

Alan Dickson, BBC Chief Finance Officer, said: ‘The sale of the Elstree Center site is part of an ongoing review of the BBC’s property portfolio to deliver the best value to license fee payers.’

The BBC also uses Elstree for its Children in Need telethon, while Sky recently opened a 27.5-acre studio complex there.

Interest in British studio space has increased as streamers such as Netflix and Disney increase demand for new programming.

John O’Driscoll of Axa Investment Managers said: ‘With the signing of BBC Elstree Centre, we are acquiring one of the oldest working TV and film studios in Britain, with a history dating back almost 110 years.

“The entire area has a long and illustrious history of producing some of the world’s most celebrated films and television series, and under our leadership we want to continue that legacy.”

O’Driscoll added that “content producers today are more cost conscious than ever” and demand for well-placed studio space remains high.