Landsec has acquired full ownership of MediaCity from Peel Group, a significant move in the property sector.
- The acquisition includes the 52-acre site, dock10 studios, and a 218-bed hotel.
- Landsec first invested in MediaCity in 2021, initially securing a 75% stake for approximately £430 million.
- Recent transactions involved a £22 million cash consideration and the assumption of £61 million in secured debt.
- MediaCity is set to be a cornerstone for innovation and development, supported by Salford City Council’s vision.
The notable acquisition by Landsec marks a substantial development in the UK property landscape. By acquiring MediaCity from Peel Group, Landsec has secured complete ownership of the expansive 52-acre site in Salford, which includes the prominent dock10 studios and a significant hotel asset. This development signifies a continuation of Landsec’s strategic commitment to growth and innovation within the region.
Initially, in 2021, Landsec took a decisive step by acquiring a 75% stake in MediaCity. This initial investment was characterised as a joint venture with Legal & General, as well as Peel Group. The recent transaction saw Landsec acquiring the remaining shares, including a £22 million cash consideration and taking on £61 million in secured debt. This move was calculated based on a discount to the latest book value, reflecting anticipated future income that Landsec is positioned to leverage effectively.
Mike Hood of LandsecU+I expressed optimism, highlighting that the increased ownership will further elevate MediaCity’s potential as a vibrant hub for cutting-edge businesses. He stated, ‘MediaCity has huge potential.’ His sentiments point towards MediaCity becoming a focal point for both residential and commercial developments, appealing to businesses and residents alike.
Meanwhile, Salford City Council has laid out ambitious plans for the area. The council’s approval earlier this year includes the construction of offices and over 3,000 new homes. This development aligns with the broader Salford Quays 2030 Vision, integrating enhanced retail, leisure, and recreational areas across MediaCity and the adjacent Quayside. This comprehensive plan aims to double the area’s capacity and attractiveness, segmenting it into four distinct zones: Media, Waterfront, Gateway, and Living Hub.
Steven Underwood, CEO of Peel Group, shared his perspectives, acknowledging the transformation of MediaCity into a dynamic centre for digital and creative sectors over the past 13 years. He commended the public-private partnership efforts, underscoring the project’s success as a model of regeneration. With Landsec leading the next chapter of MediaCity’s evolution, Peel Group remains invested in its ongoing collaboration to fulfil the visionary expansion plans.
The acquisition by Landsec underscores a pivotal transformation for MediaCity, setting the stage for substantial growth and innovation.
