Landsec takes control of MediaCity in £83m deal with Peel
Property giant, Landsec, has taken full control of MediaCity from Manchester-based Peel Group, which had held the remaining 25% stake in the Salford development.
The deal also includes the television facility dock10 and the 218-bed hotel at the estate which were wholly owned by Peel.
The acquisition is based on a cash consideration of £22m plus the assumption of £61m of secured debt.
The overall consideration of £83m represents a discount to the latest book value of Landsec’s existing 75% interest in MediaCity.
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.
Taking this and the value of the hotel and studios into account, the transaction is broadly in line with the latest book value of the estate and earnings neutral in the near term, said Landsec.
Looking further ahead, Landsec said this transaction provides it with full control of MediaCity and the ability to implement its plans for this unique estate, plus the potential to deliver significant new residential space at the land immediately next to the existing estate.
Mike Hood, CEO of Landsec U+I, said: “MediaCity has huge potential.
“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 to work, live and enjoy their lives.”
He added: “ We look forward to sharing more about our plans in the near future.”
Steven Underwood, Chief Executive at The Peel Group said: “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.”
He added: “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.”
