Rents drive growth at MediaCityUK
PEEL Media, the company which owns and operates MediaCityUK, has seen revenues continue to rise, but it is still making a loss.
Recently-filed accounts show revenues from tenants grow by 23% to £21.5m in the year to March. Pre-tax losses were static at £4.1m.
Half of the 36-acre site has been developed with the BBC occupying 330,000 sq ft for 5 Live, the children’s department, sport, North West coverage, and programmes for Radio 4 and 6 Music, as well as technology and marketing roles.
Some 100,000 sq ft is also let to the University of Salford, while ITV has taken 62,500 sq ft. During the year 9,300 sq ft was let to Dock 10 and nearly 9,000 sq ft was taken by Bright Future Software.
The business made an operating profit of £15.2m, down on last year’s £20.8m which was inflated by an exceptional credit associated with the multi-storey car park. But charges of £19.4m (2013: £24.9m) to group companies pushed it to a pre-tax loss. The value of the estate was revised up by £6m to £418.3m – still down on the historical cost of £490.3m.
Last December Peel Group refinanced a £325m loan secured against its property assets at MediaCityUK. It said the capital would help it start new schemes at Salford Quays. The group has replaced a Lloyds facility with a five-year loan supplied by Lloyds, Citi and ING Real Estate Finance.
In October Peel secured planning permission for a £20m building at MediaCityUK. The 100,000 sq ft 10-storey building will front onto Broadway with 54,000 sq ft of office space and a 112-bed Premier Inn hotel.
