Peel Group has sold its remaining 25% stake in MediaCity to Landsec, which gives the latter full control of the site.
MediaCity, originally a 50:50 joint venture between Legal & General and Peel, has blossomed into a landmark development for the UK’s creative sector.
Landsec took a 75% stake in 2021 for £430 million, comprising L&G’s full share and 25% from Peel. It has now acquired Peel’s remaining 25% stake, plus the entirety of television facility dock10 and a 218-bed hotel, for a cash consideration of £22m plus the assumption of £61m of secured debt.
The overall consideration of £83m represents a discount to the latest book value of Landsec’s existing 75% interest in MediaCity, according to Landsec.
“This discount reflects the value of contracted future income from wrapper leases to Peel which Landsec has agreed to surrender as part of the transaction,” it continued.
It added that the transaction “provides Landsec with the ability to implement its plans for this unique estate, plus the potential to deliver significant new residential space at the land immediately adjacent to the existing estate”.
Mike Hood, CEO of Landsec U+I, 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.”
Earlier this year, Salford City Council approved plans for the Salford Quays 2030 Vision development, which includes offices and more than 3,000 homes as well as retail, leisure and recreation spaces.
Doubling the size of the area, it will be split into Media, Waterfront, Gateway and Living Hub quarters.