Landsec takes control of MediaCity in £83m deal with Peel

Property giant, Landsec, has taken full control of MediaCity from Manchester-based Peel Group, which had held the remaining 25% stake in the Salford development.

The deal also includes the television facility dock10 and the 218-bed hotel at the estate which were wholly owned by Peel. 

The acquisition is based on 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. 

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.

Taking this and 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, said Landsec.

Looking further ahead, Landsec said this transaction provides it with full control of MediaCity and the ability to implement its plans for this unique estate, plus the potential to deliver significant new residential space at the land immediately next to the existing estate.

Mike Hood, CEO of Landsec U+I,  said: “MediaCity has huge potential.