Legal & General share price: Group acquires 50% stake in MediaCityUK

Legal & General Group Plc’s (LON:LGEN) principal investment division announced today the acquisition of a 50 percent stake in Peel Group’s MediaCityUK scheme at Salford Quays in Manchester. Legal & General Capital (LGC) said it plans to work with the private real estate investor on the strategic development of the project and the wider Salford area, with the vision of developing the Media Canary Wharf of the North.

The statement from the FTSE 100 insurer does not disclose details of the sum which changed hands to close the deal. The British insurer said it values the current 37 acre site at Salford Quays at £503 million. Media City is home to the largest BBC premises outside of London, as well as ITV’s northern studios. It is also home to over 200 other businesses and departments from the University of Salford.

Paul Stanworth, managing director at LGC wrote as part of the release that the acquisition marks “a significant step forward in our direct investment into major UK infrastructure and real estate assets […] 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.” The Peel Group will retain responsibility for ongoing development and asset management of the site.
As of 13:27 GMT, Legal & General‘s share price was trading 0.07 percent lower at 283.70p. The insurer’s stock has soared over 14 percent since the start of the year.
According to the Financial Times, as of 07 March, 2015, the consensus forecast amongst 25 polled investment analysts covering Legal & General Group Plc has it that the company will outperform the market. The median target of the 18 analysts offering 12 month price targets is 283.50p with a low estimate of 180.00p and a high estimate of 326.00p.
As of 14:07 GMT, Tuesday, 10 March, Legal & General Group Plc share price is 284.10p.
As of 18:23 GMT, Tuesday, 10 March, Legal & General Group Plc share price is 282.90p.