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.”