Business
Landsec investment in MediaCity
Landsec investment in MediaCity.
About this update from Land Securities Group Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 1329R\n Land Securities Group PLC\n 03 November 2021\n \n \n \n \n 3 November 2021\n \n \n \n \n \n Land Securities Group PLC (\"Landsec\") \n \n \n \n \n \n Landsec progresses growth strategy with investment in MediaCity\n \n \n \n \n \n \n \n \n Landsec today announces that it has acquired a majority stake in MediaCity, the 37 acre media, digital and tech hub in Salford, Greater Manchester previously owned by a 50:50 JV between Legal & General and Peel L&P. Landsec will partner with Peel L&P who will retain a 25% stake and continue to serve as asset and development manager. \n \n \n \n \n \n MediaCity has a gross asset value of £567.5m. Landsec will pay a net purchase price of £425.6m for the 75% interest. The transaction includes £293.6m of debt (£220.2m on a proportionate basis), reducing Landsec's equity investment to £207.6m which is satisfied in cash drawn from existing facilities. Landsec will also have an obligation to pay a further amount capped at £15m linked to building remediation works which will be completed post-transaction.\n \n \n \n \nThe waterside destination \n is home to some of the world's most exciting creative, tech and media brands, from BBC North and ITV to Ericsson, The Hut Group, Kellogg's and over 250 creative and tech businesses as well as schools and universities. The biggest tech and media hub outside London, MediaCity produces 50,000 hours of content every year, and is home to 8,000 residents and workers.\n \n \n \n \n \n Phase one was completed 10 years ago and \n comprises 1.48m sq ft across 11 buildings including work space, studios, incubator labs, residential as well as ancillary leisure and retail. It is 96% let with a WAULT of just under 10 years. It generates £31.1m of net operating income per annum (100%), reflecting a 5.8% net initial yield. Over half of the income has rent reviews linked to RPI, with collars and caps guaranteeing future rental uplifts. \n \n \n \n \n \n Phase two has already seen the completion of two residential towers - 'The Green Rooms' and 'The Lightbox' as well as the award-winning mixed-use commercial space, the 'Tomorrow building'. This second phase has outline planning consent for an additional \n 1.6m sq ft including office and residential, with an estimated Gross...