It’s been confirmed that Landsec has acquired MediaCity from Peel Group.
That means it will have full ownership of the 52 acre site, including dock10 studios and the 218-bed hotel, which were wholly owned by Peel.
Tenants and staff were informed of the decision yesterday.
Landsec first took a 75% stake in MediaCity in 2021, paying around £430m. At the time, MediaCity was a joint venture between investor, Legal & General and Peel. The property developer acquired L&G’s full 50% share and 25% from Peel. It has now acquired Peel’s remaining 25%, based on a cash consideration of £22m, “plus the assumption of £61m of secured debt.”
This £83m, it stated, represented a discount to the latest book value of its existing 75% interest in MediaCity.
Landsec added that this discount “reflects the value of contracted future income from wrapper leases to Peel which Landsec has agreed to surrender as part of the transaction.”
” MediaCity has huge potential,” said Mike Hood from LandsecU+I.
“Through our increased ownership, we can curate a place that continues to attract cutting-edge businesses and investment to the area, and where people choose to come work, live and enjoy their lives. We look forward to sharing more about our plans in the near future.”
Earlier this year, Salford City Council approved plans for offices and more than 3000 homes to be built on the site.
The Salford Quays 2030 Vision development also includes additional retail, leisure and recreation spaces across MediaCity and Quayside, doubling the size of the area. It will be split into 4 distinct “quarters” – Media, Waterfront, Gateway and Living Hub.
Across the UK, Landsec owns 22.8m sq ft of land, worth £10bn.
This afternoon, Steven Underwood, the Chief Executive of Peel Group told Prolific North:
“The Peel Group is incredibly proud of what has been achieved at MediaCity. What was once a derelict and disused site on the banks of the Manchester Ship Canal in just 13 years has become the beating heart of the Digital and Creative sectors in the region and beyond. This visionary development has created boundless economic opportunity, an unrivalled cultural destination and delivered thousands of new homes.
“This couldn’t have been achieved without the support of Salford City Council’s shared vision but also all of our other public and private sector partners. Making MediaCity what it is today has been one of the country’s finest examples of public-private sector partnership – the cornerstone of successful regeneration. LandSec is fully committed and passionate about delivering the next phase in MediaCity’s evolution and as such we couldn’t imagine a better owner for MediaCity’s next step on its journey. As the footprint of MediaCity expands we will continue to work with Landsec and our partners to deliver on the exciting future for MediaCity and the wider Quays.”
