£277m refinancing for MediaCity
MEDIACITYUK has announced a £277m refinancing deal a week after developer Peel Group sold a 50% stake to Legal & General Capital.
The funding comprises a £277m real estate commercial mortgage facility arranged and underwritten by Lloyds Bank and Citigroup Global Markets.
The loan represents circa 55% Loan to Value and the banks are looking to launch syndication in the coming weeks.
John Feeney, managing director and global head of commercial real estate at Lloyds said: “This transformational scheme is energising Salford Quays and the wider Greater Manchester and North West economies. As this new phase of ownership unfolds, we’re proud to play a continuing role.”
Steven Underwood, chief executive, The Peel Group, added: “We are very pleased to have secured this facility, courtesy of Citigroup and Lloyds Bank. It’s an arrangement that builds on a long-standing commercial relationship, which we regard as an important strategic partnership as we work with LGC on the exciting future development plans for MediaCityUK.”
Paul Stanworth, managing director of Legal & General Capital, said: “We are delighted by this deal. Supported by two of L&G Groups’ key banking partners, our investment with Peel in MediaCityUK is a significant step forward in our direct investment into major UK infrastructure and real estate assets, paving the way to further significant regeneration of Salford.”
Spanning 37-acres, MediaCityUK, is the largest purpose-built creative, digital and technology community in Europe. It is home to more than 200 businesses including the BBC and ITV and the University of Salford.
