Press releases

Legal & General Capital Take 50% Stake in Strategic Media Asset - MediaCityUK

Legal & General Capital ("LGC") has announced that it has successfully completed the purchase of a 50% interest in the Peel Group’s landmark MediaCityUK scheme at Salford Quays in Manchester, which is currently valued at £503 million.

MediaCityUK is the largest purpose-built creative, digital and technology community in Europe, and the UK’s first media campus. Its vision is to provide a global centre of excellence for innovation and creation, and to be a broadcasting hub enabling businesses to operate across all media sectors.

Paul Stanworth, Managing Director of Legal & General Capital, 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.”

LGC plans to work with The Peel Group on strategically developing MediaCityUK and the wider Salford area, with the aim of creating the Media Canary Wharf of the North.

Steven Underwood, Chief Executive of the Peel Group, commented:  “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, slow money, 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.”

The current asset comprises a 37 acre freehold site encompassing studios, office accommodation, incubator space, residential, hotels, and retail and leisure facilities. In total, the estate offers approximately 1.6 million sq ft of built accommodation, anchored by the BBC, ITV and the University of Salford. It is also home to over 200 other businesses including dock10, the UK’s largest independent studio and post-production facility, and a number of retail and leisure occupiers. MediaCityUK also has the opportunity for significant future growth with a large amount of consented development land that the partners will together to regenerate.

The Managing Director of MediaCityUK, Stephen Wild, said:  “Technology, media and creative is a rapidly growing sector 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.”

LGC has acquired a 50% interest in the corporate holding vehicles, Peel Holdings (media) Ltd and Peel Media Ltd. LGC was advised by Legal & General Property (“LGP”). Peel will retain responsibility for both the asset management of the estate and the development management of future plots.

LGC is the principal investment division for Legal & General, responsible for investing the Group’s capital, primarily to increase the risk adjusted returns for its shareholders. LGC has £5.1bn of assets and is seeking UK housing, infrastructure and social real estate opportunities that require long term capital. LGC is regenerating over 40 acres of central Salford in partnership with HCA and Muse. New homes and offices are being built, and public spaces created.

In addition to the MediaCityUK acquisition, LGC recently announced a new UK regeneration vehicle partnered by the UK Government’s Regeneration Investment Organisation (RIO) to extend its pipeline of regeneration projects across the UK. Allocating £1.5bn to the vehicle and working alongside investment partners, LGC plans to secure further external funding up to £15bn and will collaborate with central and local government to identify critical infrastructure projects. It has also just commenced regenerating Bracknell in a £200m joint venture, in partnership with Bracknell Forest Council.

Legal & General was represented by JLL. The Peel Group was advised by Macquarie Capital, Savills and Addleshaw Goddard.

- Ends -


For further information, please contact:

Richard King,

Head of Group Corporate Communications,


020 3124 2095


Olivia Goodall,

Head of Communications,

Real Assets, LGIM

020 3124 2777


Paul Newman,

Director of Communications,

The Peel Group

0161 886 5309


Notes to editors:

Legal & General Capital

Legal & General Capital (“LGC”) manages the principal investments of the Group. In 2014 LGC contributed £203m (16%) to the Group’s Operating Profit. As at 31st December 2014, LGC managed £5.1bn Group Capital funds, which support the long term insurance reserves of the insurance entities. In 2014, LGC works closely with Legal & General Property (“LGP”) in developing investment opportunities and co-investing with LGP’s £13.6bn funds under management and Legal & General Retirement.

Established in 1836, Legal & General is a leading provider of insurance, savings and investment management products in the UK. The Group has a market capitalisation of £16.5bn (as at 5 March 2015) and is responsible for investing £709bn worldwide (as at 31st December 2014) on behalf of investors, policyholders and shareholders. We have over seven million customers in the UK for life assurance, pensions, investments and general insurance plans and over one million customers in the US who rely on us for life assurance. In 2014, Legal & General's operating profit was £1,275m and earnings per share were 16.70p for the period, an increase of 10% for both respectively.


The Peel Group

The Peel Group is one of the leading real estate, infrastructure and transport enterprises in the UK, with assets owned and under management of over £5 billion. Established by Executive Chairman John Whittaker more than 40 years ago, The Peel Group has grown through an ethos of recycling capital and delivering long-term investment, mainly in the North West of England. The family-owned Group is a substantial investor in ports, airports, commercial property and development land, complemented by a portfolio of investments in publicly-listed companies, including The Pinewood Group and Land Securities.