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* Buys majority stake in media-tech hub MediaCity
* 75% stake purchase in MediaCity for $580 mln
* Says co's office portfolio utilisation now at 45%
(Adds CEO comment, background)
By Aby Jose Koilparambil
Nov 3 (Reuters) - Britain's Land Securities has
announced its second acquisition in the mixed-use property
sector in a week, betting on growing demand for sites that
combine commercial and residential spaces in the wake of the
COVID-19 pandemic.
Landsec said on Wednesday it had bought a 75% stake in
Greater Manchester-based MediaCity, the UK's biggest tech and
media hub outside London, for $580 million. The deal came two
days after it announced the purchase of regeneration firm U+I
for $260 million.
Many UK landlords are looking to diversify into mixed-use
properties as the pandemic erodes the valuations of retail and
office spaces.
Landsec Chief Executive Mark Allan said the company's
mixed-use portfolio would surge five-fold from present levels to
represent 20%-25% of its overall portfolio in the next four to
five years.
"There's more desire from people to have more of that
immediacy within their local area rather than having to travel a
long way to work," Allan said in an interview.
"Mixed-use neighbourhoods are becoming increasingly
important in terms of the fabric of cities."
MediaCity, a 37-acre waterside property that houses the
offices of BBC North, ITV and Ericsson, also
includes residential, leisure and retail spaces.
The property was a 50:50 joint venture between Legal &
General and Peel L&P, which will now retain a 25% stake
and serve as an asset and development manager.
Allan said office utilisation at Landsec properties today
was still only around 45%. By spring the number of people in
central London at any point in time would still be some 20%
below pre-pandemic levels as people adopt hybrid working models,
he added.
($1 = 0.7322 pounds)
(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by
Ramakrishnan M. and Jan Harvey)
