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World famous Abbey Road recording studios up for sale

Tuesday 16 February 2010 13:36 GMT
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London's iconic Abbey Road recording studios have been put up for sale by embattled music group EMI, it was reported today

EMI's private equity parent Terra Firma is said to be hoping a sale of the studios - made famous by the eponymous Beatles album and zebra crossing cover shot - could raise tens of millions of pounds.

It is not clear if the sale plans would also include the Abbey Road brand as well as the property.

The move would help EMI to pay down some of the mammoth debts it was saddled with after Terra Firma's highly-leveraged 2007 takeover.

EMI has been touting for interested buyers to acquire the studios at number 3 Abbey Road in St John's Wood, according to the Financial Times.

The group bought the property for £100,000 in 1929, transforming it into world famous studios that have hosted artists as diverse as composer Sir Edward Elgar, who recorded Land Of Hope and Glory with the London Symphony Orchestra there in 1931, to Pink Floyd and Blur.

Abbey Road's rich history also saw it used for propaganda recordings for the British Government during the Second World War.

The Beatles used Abbey Road for 90% of their recordings, naming their final album after the studios in 1969.

However, recent recording advances and cheaper overseas studio facilities have added competitive pressure to Abbey Road and a sale of the studios would raise much needed cash for its struggling owner.

EMI - which counts Robbie Williams and Coldplay among its artists - posted a £1.75 billion loss for the year to March 2009 in accounts earlier this month.

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Terra Firma was last week reportedly looking for investors to pump £120 million into the business as it seeks capital.

It took on huge debts in 2007 to buy the firm and is almost certain to breach lending terms without further investment, handing control to lender Citigroup.

Another round of cost cutting its also understood to be in store as the group taps investors for cash.

EMI chief executive Elio Leoni-Sceti is believed to be drawing up plans to strip millions of pounds from the company's costs and rapidly grow the group's digital operations.

The group today remained tight-lipped on any sale of Abbey Road or if it was part of a wider asset sale.

EMI has looked to exploit the Abbey Road name in recent months, only last November launching a service called Abbey Road Live offering fans a way to buy instant concert recordings at venues

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