Legal & General Capital (LGC) has acquired a 50% interest in the MediaCityUK scheme in the UK city of Manchester, which is currently valued at £503 mln (€700 mln).

Legal & General Capital (LGC) has acquired a 50% interest in the MediaCityUK scheme in the UK city of Manchester, which is currently valued at £503 mln (€700 mln).

Located at Salford Quays in Manchester, MediaCityUK is the largest purpose-built creative, digital and technology community in Europe, and the UK’s first media campus. It is designed to be a broadcasting hub enabling businesses to operate across all media sectors.

LGC is the main investment division of UK insurance group Legal & General. Paul Stanworth, managing director of LGC, said: ‘Today’s acquisition in MediaCityUK is a significant step forward in our direct investment into major UK infrastructure and real estate assets…We know the North West well and are already involved in regenerating Salford. Now, with our investment in MediaCityUK, the potential to drive growth and prosperity for the area is immense. Media and internet technologies are the new industrial revolution and Greater Manchester is at the heart of it.’

LGC plans to work with developer The Peel Group on strategically developing MediaCityUK and the wider Salford area, with the aim of creating the Media Canary Wharf of the North.

The current asset comprises a 15-hectare freehold site encompassing studios, office accommodation, incubator space, residential, hotels, and retail and leisure facilities.

In total, the estate offers around 1.6 million sq ft (14,800 m2) of built accommodation, anchored by the BBC, ITV and the University of Salford. It is also home to over 200 other businesses including dock10, the UK’s largest independent studio and post-production facility, and a number of retail and leisure occupiers.

Steven Underwood, CEO of the Peel Group, commented: ‘Legal & General’s focus on regeneration, slow money, and long history of investing in UK property makes them an ideal partner. Both groups share a complementary approach to property investment, focusing on regeneration, place making and long-term value creation. We are both committed to MediaCityUK’s continued growth as a major destination for business, residential living, retail and leisure over the coming years.’

Legal & General was represented by JLL. The Peel Group was advised by Macquarie Capital, Savills and Addleshaw Goddard.

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