Landsec acquires remaining interest in Salford’s MediaCity
Landsec has taken full control of MediaCity in Salford after acquiring Peel Group’s remaining 25% interest in the mixed-use development.
The real estate investment trust has also acquired television facility dock10 and the estate’s 218-bed hotel, both of which were wholly-owned by Peel.
The acquisition is based on a cash consideration of £22m plus an assumption of £61m of secured debt. This overall consideration of £83m represents a discount to the latest book value of Landsec’s original 75% interest in MediaCity.
Landsec said his discount reflects the value of contracted future income from “wrapper” leases to Peel, which it will surrender as part of the transaction. The group added that – taking the new value alongside the value of the hotel and studios into account – the transaction is broadly in line with the latest book value of the estate and earnings neutral in the near term.
Landsec said the transaction provides it with full control of MediaCity and the ability to implement its plans for the estate, plus the potential to deliver significant new residential space at the land immediately adjacent to MediaCity.
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, revised plans for the redevelopment of MediaCity to create an additional 800,000 sq ft of commercial space and 3,200 more homes were approved by councillors.