Landsec announces today that it has acquired a majority stake in MediaCity, the 37-acre media, digital and technology hub in Salford, Greater Manchester, previously owned by a 50:50 JV between Legal & General and Peel L&P. Landsec will cooperate with Peel L&P, which will retain a 25% ownership interest and continue to function as asset and development manager.
MediaCity has a gross asset value of £ 567.5 million. Landsec will pay a net purchase price of £ 425.6 million. for the 75% interest rate. The transaction includes DKK 293.6 million. GBP (EUR 220.2 million on a pro rata basis), reducing Landsec’s equity investment to EUR 207.6 million. GBP, which is met in cash drawn from existing facilities. Landsec will also have an obligation to pay an additional amount limited to £ 15m. linked to building redevelopment work, which will be completed after the transaction.
Mark Allan, Landsec CEO, said: “Mixed developments with a clear sense of place are becoming an increasingly important ingredient in urban structure. Opportunities to participate in large, established mixed-use developments are scarce, and MediaCity is one such opportunity.
“This acquisition gives us the opportunity to immediately use capital for high-quality income-producing assets and also to invest further over time through the development of Phase Two. MediaCity is a compelling addition to our portfolio that provides the opportunity to invest and further develop real estate. with the potential to be on site from the first half of 2023. I am particularly excited to be able to work with Peel, whose experience and expertise complement our own. “
The acquisition demonstrates further progress with Landsec’s strategic ‘grow through urban opportunities’ pillar, which is focused on providing long-term income generation and development opportunities through mixed schemes in London and other major UK cities.