Legal & General Capital has secured a half share in Europe’s biggest purpose-built creative, digital and technology campus for an undisclosed sum.
Manchester-based developer Peel Group will continue asset management at the 37-acre MediaCityUk and will use the cash from the sale to fund further expansion at the site already valued at more than £500m.
Built on the banks of the Manchester Ship Canal in Salford, MediaCityUK — encompassing studios, office and incubator space, residential apartments, hotels, and retail and leisure facilities — is anchored by BBC North, the University of Salford and ITV. It is currently home to more than 200 individual businesses.
“Technology, media and creative are rapidly growing sectors in Greater Manchester and MediaCityUK is at the heart of this exciting trend,” said Stephen Wild, managing director at MediaCityUK, which recently opened dock10 the UK’s largest independent studio and post-production facility.
“With over 6,000 people already living and working at MediaCityUK, and the substantial opportunities for development and growth, we look forward to bringing further investment to the area jointly with LGC,” he added.
Paul Stanworth, managing director of Legal & General Capital, said media and internet technologies are the new industrial revolution and Greater Manchester is at the heart of it. The campus offers around 1.6-million sq ft of cross-sector space.
“This acquisition is a significant step forward in our direct investment into major UK infrastructure and real estate assets,” he added. “In the Peel Group, whose vision has been instrumental in the development of the North West, we couldn’t have a better partner for the stewardship of MediaCityUK,” he stressed.
“We know the North West well and are already involved in regenerating Salford. Now, with our investment in MediaCityUK, the potential to drive growth and prosperity for the area is immense.”
Steven Underwood, chief executive of the Peel Group, was equally delighted by the new partnership. “Legal & General’s focus on regeneration and long history of investing in UK property makes them an ideal collaborator,” he commented.
“Both groups share a complementary approach to property investment, focusing on regeneration, place making and long-term value creation and we are both committed to MediaCityUK’s continued growth as a major destination for business, residential living, retail and leisure over the coming years.”
The complex is seen as Peel’s jewel in the crown, especially after its 2011 sale of the Trafford Centre. Its biggest ongoing project is the transformation of 50 miles of former industrial and dockland between the Port of Liverpool and Salford Docks into the £50bn, “Ocean Gateway”.
