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AIR Studios up for sale


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Sir George Martin sold the famous studio about six years ago, and the new owners are now putting the famous London studio on the market. They say it's profitable, but not in line with the direction they want to move their company.

 

If you have the means, this would be a pretty darned cool studio / complex to own. :)

 

 

http://www.prosoundnetwork.com/article/air-studios-for-sale/14976

 

http://www.airstudios.com/

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If you have to ask, you can't afford it.


-Dan.

 

Like a boat !!! If you cant afford the gas then you dont need a boat. Well I own 2 boats, 2 jet skiis, and 6 cars !! And all have a full tank of gas !!! So I think I can afford it. I just like to know the asking price before I make a sensible offer :)

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If you have to ask, you can't afford it.


-Dan.

 

 

No one who can afford it is not going to lay down the cash without doing their due diligence and one part of that is determining asking price so they would know if that price is anywhere near market value.

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No one who can afford it is not going to lay down the cash without doing their due diligence and one part of that is determining asking price so they would know if that price is anywhere near market value.

 

 

 

Very true Dak. But how would you, as a real estate expert, determine value on a facility like that? AIR Lyndhurst is one of the most famous studios in the world - and one of the largest. Would you do comps based on similar size / condition buildings in the same general area as the main valuation criteria, or would you consider the price tags of other similarly sized famous studio facilities elsewhere around the world somehow too? How much do the upgrades as a studio facility (not counting the equipment - merely the architectural acoustics and build-out) figure into the evaluation?

 

I suspect the history of the place would also figure in somehow, but I have no idea how you'd quantify that in terms of the price or worth of the place. I do believe it's a Grade II* Listed building, which means it is a "particularly important building of more than special interest", and as such, it's in the top ten percent of protected buildings in the UK. It's like 3 Abbey Road - except Abbey Road and the zebra crossing are both only Listed Grade II, which is the lesser grade. If they're not going to let Abbey Road be turned into condos, I doubt they're going to allow any significant changes to Lyndhurst. And while it seems to do well in terms of bookings for Lyndhurst Hall, there are a lot more rooms involved in the sale than just that one... which leads to the big question:

 

In this day and age, can anyone keep a facility that big busy enough to pay for it?

 

Obviously they're in a good position in terms of diversification - you've got the ability to do huge scoring dates, as well as live events, post-production for film and TV, pop music sessions, etc. etc. But that's still a ton of rooms to try to keep booked.

 

What do you guys think? Can it be pulled off in the current music biz environment and climate?

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Phil, something like that is probably the hardest to value.. It involves delving into all the various aspects of the building, property and other taxes, the actual overall history of the building, the historical significance, the facility itself as a stand alone entity, Profit and loss statements, utility costs, maintenance history and costs, usage percentage of the various rooms and available facilities & etc as well as comps for other facilities that can be found and are as similar as possible. The value of included equipment is, of course, prorated/depreciated as would be any upgrades.

Any valuation would then have to be compared to the asking price and, if less than the asking price, negotiated. If the asking price is under your evaluation after due diligence is complete, you will likely have a good deal but it's still worth negotiating for a lower price.

 

Is it feasible to operate profitably? That would depend not only on the purchase price but the taxes, maintenance and utility costs as well as the percentage of use of the various spaces.

So, the overall cost of purchase combined with current would give a general idea and projected profit/loss statement variables would have to be such that the cost of use for paying customers, lesees and other users could be kept low enough to provide full usability of the entire building.

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What do you guys think? Can it be pulled off in the current music biz environment and climate?

 

 

If the endless doom-and-gloom BBC reports are to be believed, it'll probably end up being an empty shell of a building, with no one even being able to stump up enough money to bulldoze it and turn it into X, Y or Z.

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If the endless doom-and-gloom BBC reports are to be believed, it'll probably end up being an empty shell of a building, with no one even being able to stump up enough money to bulldoze it and turn it into X, Y or Z.

 

 

As a Grade II* building I don't think they can raze it, much like the building on the historical buildings list in the states. You can buy 'em but you can't destroy them, or even do too much to change them, particularly the exteriors.

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I don't think they would allow it to be torn down, but on the other hand, if the owners go broke and the building became abandoned, it could easily fall into disrepair and become endangered that way... much like this Grade II* Listed building:

 

 

Yeah that's pretty much what I'm saying. I mean it'd be fantastic if someone could take over the place and keep it running, but when they're saying that even the great Abbey Road is struggling, it doesn't look great in the long term for the famous old studios in London. Even Olympic went a couple of years ago sadly.

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