UK property company Landsec has secured complete ownership of Salford’s MediaCity, in Greater Manchester, acquiring the remaining 25% stake from Peel Group.
The deal also includes the acquisition of dock10, a TV facility, and the 218-bed hotel on the estate, previously solely owned by Peel.
The acquisition was finalized for £22 mln (€26 mln) in cash, along with the assumption of £61 mln in secured debt, totaling £83 mln (€99 mln). This represents a discount to the book value of Landsec's existing 75% stake in MediaCity.
Despite the discount, the deal is considered broadly in line with MediaCity's current book value, with no immediate impact on earnings.
Mike Hood, CEO of Landsec U+I, the regeneration arm of Landsec, 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. We look forward to sharing more about our plans in the near future.’
Landsec acquired a majority stake in Media City in 2021, previously a 50/50 joint venture between Legal & General and Peel Group, in a deal valued at around £425 mln (€507 mln).
This acquisition will enable Landsec to fully implement its vision for the MediaCity estate, including the potential development of new residential space on adjacent land.
Earlier this year, Salford City Council gave its green light to a transformative regeneration project for MediaCity and The Quays. The plan, inspired by the likes of Oslo and Darling Harbour, aims to create a vibrant waterfront destination with over 3,000 new homes, 74,322 m2 of commercial space, and public spaces. Key features of the project include a new pedestrian bridge, a revitalized Piazza, and a waterfront promenade.
