The Peel Group has sold 50% of its stake in MediaCityUK to Legal & General Capital.
The deal, worth around £250m based on LGC’s valuation of the 37-acre site at £503m, will see Peel retain responsibility for ongoing development and asset management of the estate.
The largest purpose-built creative, digital and technology community in Europe, MediaCityUK is home to BBC North and ITV’s Northern studios and a wide range of other mainly media and tech businesses.
Steven Underwood, chief executive of the Peel Group, said: “We are delighted to welcome LGC as Peel’s partner at MediaCityUK and look forward to working together during the next stage of its development.
“Legal & General’s focus on regeneration and long history of investing in UK property makes them an ideal partner. Both groups share a complementary approach to property investment, focusing on regeneration, place making and long-term value creation.
“We are both committed to MediaCityUK’s continued growth as a major destination for business, residential living, retail and leisure over the coming years.”
Established in 1836, Legal & General is a leading provider of insurance, savings and investment management products in the UK and has a market capitalisation of £16.5bn.
It is planning to work with Peel to develop MediaCityUK and the wider Salford area in order to create “the Media Canary Wharf of the North”.
Managing director Paul Stanworth said: “Today’s acquisition in MediaCityUK is a significant step forward in our direct investment into major UK infrastructure and real estate assets.
“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. 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. Media and internet technologies are the new industrial revolution and Greater Manchester is at the heart of it.”
Stephen Wild, managing director of MediaCityUK, added: “Technology, media and creative are rapidly growing sectors in Greater Manchester and MediaCityUK is at the heart of this exciting trend. 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.”
The Peel Group was advised by Macquarie Capital, Savills and Addleshaw Goddard.