Peel Group Sells MediaCity Stake: Landsec Gains Full Control
Deal News | Nov 04, 2024 | Business Cloud
In a significant property transaction, Peel Group has sold its remaining 25% interest in MediaCity to Landsec, handing them full control over the landmark UK development. Already holding a 75% stake after a £430 million deal in 2021, Landsec's latest acquisition includes a 218-room hotel and complete ownership of dock10, a television facility. The total transaction value of £83 million includes a cash sum of £22 million plus £61 million in assumed secured debt. It's noteworthy that this deal exists at a discount to the book value of Landsec’s prior stake, influenced by the relinquished future income from leases with Peel. This development offers Landsec an opportunity to execute plans for enhancing the estate with potential new residential spaces. Salford City Council's recently approved 2030 Vision emphasizes further expansion and diversification at Salford Quays, heralding more commercial and residential additions.
Sectors
- Real Estate
- Media and Entertainment
Geography
- United Kingdom – The transaction and properties involved are located in MediaCity at Salford Quays, which is a significant development area in the UK.
Industry
- Real Estate – The transaction involves significant property assets, including MediaCity, a hotel, and television facilities, making it relevant to the real estate sector.
- Media and Entertainment – MediaCity hosts media and entertainment facilities, notably dock10, a television facility, engaging with this industry classification.
Financials
- 22m – Cash consideration paid by Landsec for Peel’s remaining 25% stake in MediaCity.
- 61m – Secured debt assumed by Landsec as part of the acquisition.
- 83m – Total consideration for the acquisition of Peel’s remaining stake in MediaCity and associated assets.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Peel Group | Selling Company | Company | An infrastructure, transport, and real estate investment group that was a joint venture partner in MediaCity. |
| Landsec | Bidding Company | Company | A major British property development and investment company that acquired full control of MediaCity. |
| MediaCity | Target | Company | A large development in Salford Quays, UK, focusing on media, creative and digital industries. |
| Legal & General | Previous Partner | Company | Previously held a 50% stake in MediaCity jointly with Peel before selling their share to Landsec in 2021. |
| dock10 | Acquired Company | Company | A television facility that was part of the MediaCity stake acquired by Landsec. |
| Salford City Council | Government | Government | Responsible for approving the Salford Quays 2030 Vision development plan, impacting MediaCity. |