Landsec has taken the full control of MediaCity in Salford, Greater Manchester, through the acquisition of Peel’s 25% interest in the scheme.
Last month, EG reported that Landsec was looking to invest more in the regeneration framework over the next decade.
The deal also includes the television facility dock10 and the 218-bedroom hotel at the estate, which were both wholly owned by Peel. Landsec will pay a cash consideration of £22m and will assume £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.
The FTSE 100-listed REIT bought a majority stake in the scheme for £425.6m in 2021, with 50% acquired from Legal & General and 25% from Peel. Under the deal, Peel retained a 25% stake in the scheme, which had a gross asset value of £567.5m at the time, and its asset and development management responsibilities.
Going forward, Landsec has agreed to surrender the value of contracted future income from wrapper leases to Peel to reflect the discount.
Mike Hood, chief executive at Landsec U+I, said: “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, said: “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 quays.”
Landsec will now embark on drafting plans to deliver new residential space at the land immediately adjacent to the existing estate.
Photo by Xyz Pictures/imageBROKER/REX/Shutterstock
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