Deals

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EMI, the music company which has been a difficult investment for Guy Hands’ private equity firm Terra Firma, has decided against selling Abbey Road studios made famous by The Beatles. PERE March 2010 issue

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Guy Hands, the founder of London-based private equity firm Terra Firma, is no slouch when it comes to real estate – think Deutsche Annington, for example, an early mover in German residential property which he started at Japanese bank Nomura before building out his own buyout platform.

So he would understand the attractions of keeping a famous building, particular in his stomping ground of London. The famous building in question is Abbey Road studios owned by Terra Firma’s portfolio investment music company, EMI.

Abbey Road was, of course, made famous by The Beatles when they recorded their first stereo album there in 1969, but in recent weeks cash-strapped EMI reportedly considered selling the complex to help alleviate debt.

The postscript to this, however, suggests that Hands and EMI know sound real estate when they see it. According to the group, it rejected a £30 million (€34 million; $46 million) offer for the studios last year and in response to recent reports insists it will keep and “revitalise” the property.