ViacomCBS sells CBS Studio Center for $ 1.85 billion – The Hollywood Reporter
ViacomCBS made it official: the CBS Studios campus was sold to Hackman Capital Partners Square Mile Capital Management for $ 1.85 billion.
The definitive deal was unveiled on Tuesday after a formal sale process that sparked the interest of a number of buyers after the property in an increasingly competitive Los Angeles studio went up for sale. “This sale is part of an ongoing optimization of ViacomCBS’s real estate portfolio and operations and will allow the company to reallocate capital towards strategic growth priorities, including streaming,” said Naveen Chopra, Executive Vice President and chief financial officer of ViacomCBS, in a statement.
The property sits on a 55-acre site in Studio City and consists of over one million square feet of space, including 22 stages, production offices and support buildings, third-party tenant offices, a Specially designed broadcast center and filmable backlot locations. Upon closing, CBS Broadcasting will enter into a long-term lease for the Broadcast Center, which houses CBS 2 and KCAL 9 television stations.
ViacomCBS will continue to occupy stages and produce content in the field, as well as enter into a short-term sale-leaseback of parts of the property to manage the transition of ViacomCBS employees to other locations. “We are honored to have been chosen as the new managers of CBS Studio Center, one of Los Angeles’ most famous and successful studios,” said Michael Hackman, Founder and CEO of Hackman Capital Partners, in his own statement.
The transaction is expected to close in 2021, pending closing conditions and regulatory approvals. Real estate and partner hedge funds have been the subject of a big studio buying spree recently, including Hackman Capital and Square Mile Capital acquiring Kaufman Astoria Studios, the New York studio backlot and the original home. by Paramount Pictures.
ViacomCBS had purchased the Studio City bundle with 18 soundstages as part of the studio’s plan to offload non-core assets to focus on the streaming space. Earlier on August 16, real estate company Harbor Group International purchased the Black Rock Midtown Manhattan property, known as the CBS building, for $ 760 million, with ViacomCBS having entered into a short-term lease on the site.
Commercial real estate firm JLL oversaw the sale of ViacomCBS’s Radford campus to Studio City. The Hollywood studio also finalized past sales from CNET and Simon & Schuster to fund its content expansion and streaming strategy.