REG - BT Group PLC - BT Group announces sale of BT Tower to MCR Hotels

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21/02/2024 08:30

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RNS Number : 8370D  BT Group PLC  21 February 2024

21 February 2024

BT Group announces sale of BT Tower to MCR Hotels

BT Group has agreed to the sale of the BT Tower for £275m to MCR Hotels, who
plan to preserve BT Tower as an iconic hotel, securing its place as a London
landmark for the future.

As the UK heads rapidly into an all-digital future, a number of network
operations that were traditionally provided from BT Tower are now delivered
via BT Group's fixed and mobile networks. For example, the Tower's microwave
aerials were removed more than a decade ago, as they were no longer needed to
carry telecommunications traffic from London to the rest of the country.

The BT Tower has long been an important site for BT Group's Media &
Broadcast business, as one of the key global interchange points for live
television. As part of its long-term strategy, the Media & Broadcast
division has already been migrating services onto its cloud-based platform,
which will allow a more straightforward move to more modern and efficient
premises. This will enable the division to continue to sit at the heart of UK
and global media distribution.

Brent Mathews, Property Director, BT Group said: "The BT Tower sits at the
heart of London and we've been immensely proud to be the owners of this
important landmark since 1984. It's played a vital role in carrying the
nation's calls, messages and TV signals, but increasingly we're delivering
content and communication via other means. This deal with MCR will enable BT
Tower to take on a new purpose, preserving this iconic building for decades to
come."

Tyler Morse, CEO and owner of MCR Hotels, said: "We are proud to preserve this
beloved building and will work to develop proposals to tell its story as an
iconic hotel, opening its doors for generations to enjoy."

MCR Hotels own around 150 hotels, including the historic landmark Eero
Saarinen-designed TWA Hotel in New York City. Payment for the sale will be
made over multiple years, as BT Group equipment is progressively removed from
the building, with final payment on completion of the purchase.

 

Notes to editors:

The BT Tower is a grade II listed communications tower located in Fitzrovia,
London. An iconic part of the London skyline, the main structure is 177 metres
(581 ft) high, with a further section of aerial rigging bringing the total
height to 189 metres (620 ft). Upon completion in 1964, it overtook the
Millbank Tower to become the tallest structure in London until 1980, when it
was surpassed by the NatWest Tower.

BT Tower was opened for operations in 1965 by Prime Minister Harold Wilson. As
well as acting as a hub for the UK's communication networks, BT Tower was open
to the public until 1971, with a restaurant making use of the revolving top
floor. Since 1984, BT Tower has been operated by BT Group, with its top floor
regularly hosting corporate and charity events, and its "infoband" screen
regularly displaying messages across London.

 BT Group has detailed plans to simplify its operations and lower costs
across the company, including reducing the number of offices in its estate
from more than 300 to around 30. The company, in a separate deal, sold its
former headquarters, BT Centre, in July 2019 for £210 million and moved into
a state-of-the-art HQ in 2021 at One Braham, Aldgate. The Tower deal forms
part of the simplification of BT Group's property portfolio.

 

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About BT Group

BT Group is the UK's leading provider of fixed and mobile telecommunications
and related secure digital products, solutions and services. We also provide
managed telecommunications, security and network & IT infrastructure
services to customers across 180 countries.

BT Group consists of three customer-facing units: Consumer serves individuals
and families in the UK; Business covers companies and public services in the
UK and internationally; Openreach is an independently governed, wholly owned
subsidiary wholesaling fixed access infrastructure services to its customers -
over 650 communications providers across the UK.

British Telecommunications plc is a wholly owned subsidiary of BT Group plc
and encompasses virtually all businesses and assets of the BT Group. BT Group
plc is listed on the London Stock Exchange.

For more information, visit www.bt.com/about
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