Landsec has fully acquired MediaCity, marking a significant milestone.
- The acquisition includes the complete 52-acre site, formerly owned by Peel Group.
- The purchase price includes a cash consideration of £22m and £61m of assumed debt.
- Salford City Council has approved plans for major development in the area.
- This acquisition is part of a broader strategy to enhance MediaCity’s appeal.
Landsec’s complete acquisition of MediaCity from Peel Group signifies its full ownership of the extensive 52-acre site. This strategic move brings under its umbrella key assets including the iconic dock10 studios and a 218-bed hotel. The transaction ensures that Landsec holds the reins of this vibrant technological and creative hub.
The transaction was finalized with Landsec acquiring the remaining 25% of MediaCity from Peel Group, along with a cash consideration of £22 million and the assumption of £61 million in secured debt. This acquisition was achieved at a discounted rate compared to the previously established book value of its existing 75% interest, reflecting contracted future income agreements that have been relinquished as part of this deal.
This acquisition is anticipated to unlock significant potential for MediaCity. According to Mike Hood from LandsecU+I, the company intends to transform MediaCity into a magnet for innovative enterprises and investments, enhancing its allure as a place where people can work, live, and engage in recreational activities.
Further developments at MediaCity are on the horizon, following approvals from Salford City Council for an expansive redevelopment plan. This ambitious vision includes the construction of office spaces and over 3,000 homes, as well as additional retail and leisure facilities. The development aims to expand MediaCity and Quayside into four distinctive quarters: Media, Waterfront, Gateway, and Living Hub.
Across the United Kingdom, Landsec boasts ownership of 22.8 million square feet of land valued at £10 billion, underpinning its reputation as a premier commercial property developer. Steven Underwood, CEO of Peel Group, commended the transformative journey of MediaCity over the past 13 years, emphasizing its evolution from a neglected site to a critical nexus for digital and creative industries.
Landsec’s acquisition of MediaCity underscores its commitment to nurturing this thriving community of innovation.
