Media City refinanced with aim to be 100% let by end of 2014

Paul Unger

Lloyds Bank Commercial Banking and Citi have provided a £325m jointly underwritten loan to Peel Group secured against assets in Media City UK, Salford Quays.

The new facility refinances an existing Lloyds Bank facility. The five-year facility enables the Peel Group to maintain positive leasing momentum towards full occupancy by the end of 2014 and to further the regeneration of the Salford Quays area.

Media City UK contains 770,000 sq ft of commercial space and is currently 90% let, mainly in the Orange Tower where six floors of 13,000 sq ft each are available at a quoting rent of £24/sq ft. CBRE and Cushman & Wakefield are the agents.

Stephen Wild, managing director, Media City UK, said the new finance reflected the "national significance" of the media development occupied by BBC and ITV among others.

John Feeney, global head of corporate real estate at Lloyds Bank, said: "Media City UK is yet another example of Peel Group's transformational activities and long-term, ambitious vision. We are delighted to have successfully closed this landmark transaction supporting a valued client."

Wes Barnes, head of European real estate at Citi, said: "We enjoyed the opportunity of working with the Peel Group and Lloyds Bank Commercial Banking to provide a long term financing facility, which supports the Peel Group's continued development of MediaCityUK into a world class media hub."

Linklaters LLP acted on behalf of the underwriters; Addleshaw Goddard LLP advised the Peel Group. The underwriters also acted as mandated lead arrangers for the credit facility, which included ING Real Estate Finance (UK) BV.

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