ViacomCBS sells CBS Studio Center for $ 1.85 billion

ViacomCBS announced an agreement to sell LA’s CBS Studio Center to two investment companies for $ 1.85 billion, the latest in a series of divestments of real estate for the company.

The media conglomerate had confirmed that it was looking to sell CBS Studio Center, which is located on a 55-acre plot in Studio City, this summer. The CBS Studio Center property and its affiliates are acquired through a partnership formed by Hackman Capital Partners and Square Mile Capital Management. The transaction is expected to close before the end of the year, subject to usual closing conditions, including regulatory approval.

CBS Studio Center includes more than 1 million square feet of space, including 22 stages, production office and support buildings, third-party rental offices, a custom-built broadcast center, and filmable backlot locations.

The deal to sell CBS Studio Center comes after ViacomCBS sold CBS ‘New York headquarters, the Black Rock skyscraper, for $ 760 million to real estate investment firm Harbor Group International in July. In 2018, CBS Corp. sold the Television City property in the Fairfax district to Hackman Capital for $ 750 million.

“This sale is part of an ongoing optimization of ViacomCBS ‘property and operations portfolio and will enable the company to reallocate capital to strategic growth priorities, including streaming,” CFO Naveen Chopra said in a statement.

Upon completion, CBS Broadcasting will enter into a long-term leaseback of the Broadcast Center, which is home to local television stations KCBS and KCAL. ViacomCBS will continue to occupy stages and produce content on the site, as well as enter into a short-term leaseback of certain parts of the property to handle the transition of ViacomCBS employees to other locations, the company said.

Popularly known as the CBS Radford site, CBS’s entertainment division had moved to the site in 2008. In recent years, CBS Studio Center expanded and built new structures, including its CBS Television facilities, to handle the addition of the television stations, the entertainment division. and the addition of shows such as ‘Entertainment Tonight’.

The origins of the CBS Studio Center go back to the silent film era, when a film studio was built on the site in 1928. Over the years, it has been home to several television productions, including “Gunsmoke,” “My Three Sons,” “Gilligan’s Island.” , “The Mary Tyler Moore Show,” “American Gladiators,” and “Seinfeld.”

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