BBC puts its Elstree studios up for sale

The BBC is to sell off its Elstree Studios where the soap opera EastEnders is filmed as the state-funded broadcasting giant continues to slim down its operations.

After a review of its commercial arm, the BBC said it would look to sell its BBC Resources division, a unit that comprises its production and post-production operations as well as around 18 studios, including Elstree.

BBC Resources had sales of about£125m last year, 80 per cent of which is derived internally, and has already attracted interest from potential trade and private equity buyers. The profitable and cash-generative division could fetch up to £150m.

The BBC hopes to complete the sale of the unit by the end of March next year and has set a bid deadline of 7 September for interested parties. It is looking to transfer 1,300 BBC Resources staff to the new owners as part of the deal.

Under Mark Thompson, the director general of the BBC, the broadcaster has looked for ways to "export or exploit the BBC brand or content" and operations in order to more efficiently use funds. The broadcaster said its resources division provided a vital service but it was not essential it was owned by the BBC. It has already disposed of a number of operations including its BBC Broadcast division and non-core services such as IT services.

Unions representing broadcasting workers expressed alarm at the potential sale.