Landsec buys 75% stake in Salford-based tech hub MediaCity

Land Securities has bought a 75% stake in Salford-based digital and tech hub MediaCity for £425.6m.

The 37 acre hub in Greater Manchester was previously owned by a 50:50 joint venture between Legal & General and Peel L&P. Landsec said on Wednesday that it will partner with Peel L&P, who will retain a 25% stake and continue to serve as asset and development manager.

MediaCity has a gross asset value of £567.5m. Landsec said the deal includes £293.6m of debt, reducing its equity investment to £207.6m.

The waterside destination, which is the biggest tech and media hub outside London, is home to brands such as BBC North, ITV, Ericsson, The Hut Group and Kellogg's.

Landsec chief executive Mark Allan said: "Mixed-use developments with a clear sense of place are becoming an increasingly important ingredient in the fabric of cities. Opportunities to participate in large scale, established mixed-use developments are scarce and MediaCity is one such opportunity.

"This acquisition presents us with the opportunity to deploy capital immediately into 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, providing the opportunity to invest and further develop the estate with the potential to be onsite from the first half of 2023."