Landsec has taken full ownership of MediaCity in Salford, acquiring Peel Group’s remaining 25% stake in the iconic mixed-use development. The real estate investment trust (REIT) also gained ownership of dock10, MediaCity’s television facility, and the estate’s 218-bed hotel, both previously held by Peel.

The transaction, which includes a cash payment of £22 million and the assumption of £61 million in secured debt, totals £83 million. Landsec secured this at a discount to the latest book value of its existing 75% holding in MediaCity, a reflection of Peel’s surrender of “wrapper” leases and the potential income loss associated with those leases. Factoring in the additional assets of the hotel and dock10 studios, the transaction aligns with the book value of MediaCity, ensuring it remains earnings-neutral in the short term.

With this acquisition, Landsec gains full control over the future direction of MediaCity, including the adjacent land that offers substantial development potential. The REIT is now positioned to lead the estate’s next growth phase, with plans to create more residential spaces and attract a mix of innovative businesses to the area.

Mike Hood, CEO of Landsec U+I, commented, “MediaCity has immense potential. With our increased ownership, we can fully realise our vision for the area—creating a vibrant community where people come to work, live, and enjoy their lives. We look forward to sharing more about our plans soon.”

Earlier this year, Landsec received approval for an expansion of MediaCity that will deliver an additional 800,000 sq. ft. of commercial space and 3,200 new homes. With complete ownership, Landsec is now in an ideal position to drive the continued transformation of this landmark destination in Salford.

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