Studios sell off rumours ‘damaging’

7:40am Friday 26th May 2006

The councillor responsible for Elstree Studios this week dismissed speculation about the council selling off its biggest asset as premature and damaging'.

Hertsmere's portfolio holder for property, Councillor John Graham, admitted that the option of selling the site off for housing could not be ignored but said it was only a last resort.

Mr Graham is optimistic that another bidder will be found to run the studios before next March, when the current management company's lease expires, despite last week rejecting all offers after a year-long bidding process.

"As we move forward we will keep people including residents and businesses appraised of the progress," he said.

"In this way, we can all be confident and in no doubt that the studios is, and will remain, safe and not the object of pointless and undermining rumours about its future, which only serve to damage rather than help it."

The council-owned film studios in Shenley Road, Borehamwood, attracts £16 million a year to the town and nets £800,000 in rent. But selling the land could fetch more than £30m. Mr Graham said he could not rule out this option, recommended by consultants Robson Rhodes, as it would breach his duty to protect council finances.

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