Landsec’s acquisition of MediaCity from Peel Group marks a significant development in UK property landscape.
- The deal includes prominent assets like dock10 studios and a 218-bed hotel.
- Landsec initially purchased a 75% stake in 2021, investing approximately £430m.
- The recent acquisition of the remaining 25% involved a cash consideration of £22m and £61m secured debt.
- The acquisition comes amid broader plans for MediaCity’s expansion and development.
It has been confirmed that Landsec has acquired full ownership of MediaCity, a major property development in Manchester, from the Peel Group. The acquisition includes key assets such as the dock10 studios and a sizeable hotel, enhancing Landsec’s presence in the area.
Originally, Landsec became a major stakeholder in MediaCity by purchasing a 75% stake in 2021, which cost around £430 million. This initial investment was part of a joint venture with Peel and Legal & General. However, in a strategic move, Landsec recently acquired the remaining shares, amounting to a 100% ownership.
The latest transaction involved Landsec buying out the remaining 25% stake from Peel Group for a cash consideration of £22 million. Alongside this, the deal included the assumption of £61 million in secured debt, effectively valuating the remaining interest at £83 million. Landsec stated that the purchase price represented a discount compared to the current book value of its previous 75% stake.
According to Landsec, the valuation also reflects the anticipated future income from wrapper leases to Peel, which Landsec has agreed to surrender as part of this acquisition. Mike Hood from LandsecU+I remarked on the potential MediaCity holds, expressing anticipation for the site to attract innovative businesses and investments in future years.
Recent approvals from Salford City Council outline ambitious plans for MediaCity, including the construction of over 3,000 homes and the expansion of office, retail, and leisure spaces. The development is expected to double MediaCity’s size, splitting it into four distinct quarters: Media, Waterfront, Gateway, and Living Hub.
Landsec’s portfolio includes 22.8 million square feet of land valued at £10 billion, making it one of the UK’s largest commercial property developers. This acquisition further solidifies its position in the industry. Steven Underwood, Chief Executive of Peel Group, expressed pride in the transformation of MediaCity into a key digital and creative hub, embodying a successful public-private partnership with Salford City Council and other partners.
Landsec’s complete acquisition of MediaCity signals a transformative phase for the area, poised for significant development and growth.
