We’re very excited to announce that we’ve acquired a majority stake in @MediaCityUK. The acquisition forms part of our strategy to invest and grow the business through high-quality mixed-use urban opportunities: https://t.co/lJgBIHpm0E pic.twitter.com/BIumkf5fvk— @LandsecGroup (@LandsecGroup) November 3, 2021
UK's largest commercial property developer takes major stake in MediaCity
Landsec, the commercial property development and investment company, has acquired a 75% stake in Salford's MediaCity.
The commercial landlord has paid £425.6 million to take a majority stake in the mixed-use tech and media hub, which recently celebrated its tenth anniversary.
It was previously owned as a 50:50 joint venture between Legal & General and Peel L&P. As part of the deal Landsec will partner with Peel, which retains a 25% stake and remains as asset and development manager.
Today's transaction includes £293.6 million of debt - £220.2 million of which is on a proportionate basis. Landsec has also agreed to a further payment capped at £15 million, for building remediation works completed after the transaction.
Mark Allan, CEO of Landsec, said: “Mixed-use developments with a clear sense of place are becoming an increasingly important ingredient in the fabric of cities. Opportunities to participate in large scale, established mixed-use developments are scarce and MediaCity is one such opportunity.
“MediaCity is a compelling addition to our portfolio, providing the opportunity to invest and further develop the estate with the potential to be onsite from the first half of 2023. I’m particularly excited to be able to work alongside Peel, whose experience and expertise complements our own.”
Steven Underwood, CEO of Peel L&P, added: “In the past 10 years we have created a unique destination, currently unrivalled in the UK for its breadth of offering, from global content creation and innovation, to waterside living and leisure.
“Our new partnership with Landsec is another exciting step towards our stated vision to double the size of MediaCity. As MediaCity enters its 11th year we look forward to working alongside Landsec whose ethos and vision are aligned with ours, to deliver MediaCity’s global potential benefitting all MediaCity’s local, regional and national stakeholders.”
This week, Landsec announced it would buy rival U+I, an urban regeneration specialist which operates in London, Manchester and Dublin, in a deal worth £190 million.