Peel, L&G, secure £292m for MediaCityUK expansion

Media City in Salford

Peel Media and Legal & General Capital have secured a £292.5 million loan facility to fund the next phase of development at MediaCityUK in Manchester.

The loan facility is provided by German bank Helaba, Industrial and Commercial Bank of China Limited, and Japan’s Sumitomo Banking Mitsui Banking Corporation Europe Limited.

MediaCityUK is a joint venture between Peel Land and Property Group and Legal and General Capital.

MediaCityUK has become an international destination for technology and innovation and is now home to the BBC, ITV, dock10 and Ericsson.

These global brands are complemented by more than 250 smaller media and digital businesses, with about 8,000 people now working, living and studying at MediaCityUK.

MediaCityUK managing director Stephen Wild said: “We are delighted to have such strong support from our lenders and this arrangement helps support our aspirations for future development.

“Our phase two plans will focus on driving forward the already established residential community at MediaCityUK, as well as acting as a magnet for even more digital and tech businesses. It promises to be an exciting next 10 years.”

Richard Bentley, head of real estate finance UK at Helaba, added: “Helaba is extremely pleased to have acted as co-ordinator and agent, alongside co-lenders Industrial and Commercial Bank of China Limited, London Branch and Sumitomo Banking Mitsui Banking Corporation Europe Limited for this important transaction.

“It underlines Helaba’s continued support for the joint venture.

“This financing will also assist Peel and L&G in the development of phase two, further enhancing this incredible hub.

“With the support of our co-lenders and advisors, Taylor Wessing and Savills, our strong relationship with Peel allowed a quick and seamless transaction.”

Helaba was advised by Taylor Wessing, whilst MediaCityUK was advised by Addleshaw Goddard’s corporate banking team, led by Martin O’Shea.