Peel sells remaining 25% stake in MediaCity to Landsec
The Salford Quays mixed-use scheme is now wholly owned by Landsec, which has acquired the remaining 25% for £83m, a deal first tipped by Place North West a month ago.
The acquisition of Peel’s 25% stake also sees Landsec take control of television facility dock10 and the 218-bed hotel at MediaCity, which were wholly owned by Peel.
Landsec, which is also behind the £1.4bn Mayfield development in Manchester, will now aim to drive forward the next phases of regeneration at the 52-acre MediaCity, which include 3,200 more homes and an additional 800,000 sq ft of commercial space.
An updated framework outlining plans for the future phases of the scheme, which is already home to 1.4m sq ft of offices and more than 1,100 homes, was endorsed by Salford City Council earlier this year.
The acquisition is based on a cash consideration of £22m plus the assumption of £61m of secured debt, while the overall consideration of £83m represents a discount to the latest book value of Landsec’s existing 75% interest in MediaCity, according to Landsec.
The discount, Landsec added, “reflects the value of contracted future income from wrapper leases to Peel which Landsec has agreed to surrender as part of the transaction”.
“MediaCity has huge potential,” said Mike Hood, chief executive of Landsec U+I.
“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.”
Steven Underwood, chief executive at Peel Group, reflected on his firm’s legacy at MediaCity.
“What was once a derelict and disused site on the banks of the Manchester Ship Canal in just 13 years has become the beating heart of the digital and creative sectors in the region and beyond,” he said.
“This visionary development has created boundless economic opportunity, an unrivalled cultural destination and delivered thousands of new homes.”
He added: “This couldn’t have been achieved without the support of Salford City Council’s shared vision but also all of our other public and private sector partners. Making MediaCity what it is today has been one of the country’s finest examples of public-private sector partnership – the cornerstone of successful regeneration. Landsec is fully committed and passionate about delivering the next phase in MediaCity’s evolution and as such we couldn’t imagine a better owner for MediaCity’s next step on its journey.
“As the footprint of MediaCity expands we will continue to work with Landsec and our partners to deliver on the exciting future for MediaCity and the wider Salford Quays.”
Soulless place, overpriced parking, limited connectivity other than a slow tram that takes 40 mins to get into Manchester.
By Katie
Well done Landsec now can Peel sell off their interests in Livetpool Waters so real developers can make headway on the Dock area and make up for many lost years.
Peel appear to be waiting for other people to provide the impetus for anything that happens even the new government now, time they went.
By Liverpool4Progress
Get it built, enough marketing speak…..I’m fed up of looking out of my window every day at this vacant piece of land.
By Manc Man
I work nearby, so great news.
By Rick
Excellent, landsec have been transformational for the office market in Manchester. Looking forward to seeing them revitalise this place before the heat death of the universe
By Brian cox
Dear Katie: The tram takes 20 mins to get into Manchester. But Media City is not a community, just high-rise flats or high-rise offices. But somebody, who undoubtedly lives in a Cheshire village (as a wealthy disengaged incomer), made loads of money. Id I hope you agree, that is the purpose, is it not?
By Anonymous
Hopefully Peel will sell off Salford Quays and Pomona next. They’ve haven’t maintained the upkeep Salford Quays for years, and have left Pomona undeveloped, bar 5 really poor looking apartment blocks.
By jrb
Echoing other’s comments: I really hope Peel sell off Pomona Island. Neither them nor Trafford Council seem to truly see the value of that place, and if we leave it up to them the whole island will end up occupied by the type of horror show architecture that they’ve already built there. Manchester has changed immensely in the last 15 years and we now need grown-up developers, not amateurs.
By Anonymous
MAKE THE CANARY WHARF OF THE NORTH LANDSEC! Look how successful canary wharf is, they have an extremely busy station, always people walking around there spending money on food and leisure activities, offices everywhere with big companies as well as many residential towers with amazing views. This could be an opportunity to drive such a model or a even better model into Manchester.
By Anonymous
This is great news for what is already an incredible destination in Salford / Greater Manchester. I don’t echo all the comments put forward by others – Pomona is also an incredible destination and the buildings put there so far by X1 are great, but the regeneration of the whole area needs to move at a quicker pace.
By Henry