Get the biggest stories sent straight to your inbox Sign up for regular updates and breaking news from WalesOnline Thank you for subscribing We have more newsletters Show me See our privacy notice Invalid Email

A decison on whether BBC Wales will relocate from its aging headquarters in Cardiff has moved a step closer with finance chiefs in London agreeing that a new site would make most sense, providing it can be justified on cost.

In an e-mail to BBC Wales staff today director Rhodri Talfan Davies confirmed that last week he met with the BBC finance committee where the pressing need for the upgrading of technology at Broadcasting House in Llandaff was discussed – as well as a move to a new HQ for which a property feasibility study on potential sites has been undertaken.

While a final decision on whether BBC Wales will move to new a location is not expected until next year, the finance committee has confirmed a major cash injection for technology improvements.

The ringfenced amount has not been disclosed, but is understood to be in the tens of millions.

BBC Wales will await the outcome of a final decision on relocating before drawing down on the funding. If a move is approved it would go towards technology costs associated with a new building.

If a move is ruled out it would be used to upgrade existing infrastructure at Broadcasting House.

BBC Wales will now work on a more in-depth business case for a new headquarters. It initially had a requirement for a 145,000 sq ft new site, but with costs in mind – and taking into account future editing suite and studio needs – a smaller building need is anticipated.

With the BBC having to make significant savings over the next five years, London executives will be looking for the most cost effective option possible if it is to give approval to what would be a major capital investment in Wales.

The BBC Wales site itself, which covers around seven acres, would help finance any new headquarters – particularly if sold for residential development. Being in a prime site in an affluent area of the city it should achieve around £2m per acre.

In his e-mail to staff Mr Davies said: “The committee agreed it would immediately ringfence significant new funding for us to address the many technology headaches we face due to the age and condition of our current kit and systems.

“What remains undecided at this stage is whether or not we should spend this new money at our existing site here in Llandaff, or relocate to a new building elsewhere in Cardiff.

“At the meeting last week, the committee concluded that relocating to a new building would make most sense for the BBC – if it could be afforded – because it would resolve both the technology and accommodation shortcomings we currently face.”

Mr Davies added: “In the meantime, we have been tasked to do more work to ensure that our relocation proposals deliver the best possible value for money.

“This work will include a further review of our design and technology requirements, and more detailed discussions with potential partners.

“Overall, I believe the session was a very positive one for BBC Wales. There was clear agreement that investment is required urgently and there was a clear steer that relocation would be the BBC’s preferred solution if the numbers add up. Most importantly of all, it is now clear that we can look forward to a future where our teams have the tools and technology they deserve.”

Chartered surveyors Lambert Smith Hampton have shortlisted a number of potential sites for a new BBC Wales headquarters.

They include the Capital Quarter scheme, owned by JR Smart and Callaghan Square, owned by MEPC, in the centre of Cardiff.

There are also three options in Cardiff Bay: land at the Porth Teigr regeneration scheme near to BBC Wales’s Roath Lock drama production facility; a site at the Sports Village development and a parcel of land between office scheme No 3 Assembly Square and the UK headquarters of credit insurer Atradius at Cardiff Waterside.

BBC Wales has an annual income £140m, of which £66m is a budget allocation from the BBC. The remainder is income generated from network productions and its output for S4C.

As part of required cost savings BBC Wales will by 2016-17 see its budget of £66m reduced by 16% – or £10.7m when factoring in inflation.