Manchester’s MediaCityUK is the largest purpose-built creative, digital and technology community in Europe. The development is home to over 200 businesses, including two of the country’s most established broadcasters, the BBC and ITV. And it seems like confidence in North Western property investment is growing amid a recently announced £277m refinancing deal. This comes only days after developer, Peel Group sold a 50 percent stake in MediaCity to Legal & General Capital (LGC) for an undisclosed amount, a move that will no doubt provide numerous opportunities for development in the future.
Both Peel Group and LGC are committed to the long-term continued growth of MediaCityUK, which has already boosted the economy of Greater Manchester and the North West region. Plans for the development of a new hotel and considerable office space for small and medium-sized companies are expected to be set in motion as soon as possible, marking the start of a new phase of growth.
The refinancing deal comprises a real estate commercial mortgage facility, arranged and underwritten by Lloyds Bank and Citigroup Global Markets. The loan represents about 55 percent loan-to-value and the banks are expected to co-ordinate the syndication of around two-thirds of it in the coming weeks.
“This transformational scheme is energising Salford Quays and the wider Greater Manchester and North West economies”, stated John Feeney, managing director and global head of real estate at Lloyds.
Steven Underwood, chief executive of the Peel Group and Paul Stanworth, managing director of LGC were both satisfied with the partnership between their respective companies and the subsequent refinancing of MediaCityUK, with Underwood stating, “We are very pleased to have secured this facility, courtesy of Citigroup and Lloyds Bank”.
With this recent development in mind, the interest surrounding commercial property in the North West of England seems to be strengthening. It’s clear to see that the success of MediaCityUK could potentially persuade other companies looking to invest in property to make a choice that points north, rather than south.