LandSec Buys Major Stake in U.K. Tech Hub in Bid to Diversify

(Bloomberg) --

Land Securities Group Plc has bought a majority stake in a northern England tech hub for 425.6 million pounds ($580 million) as it seeks to diversify its office and retail-focused portfolio.

The transaction gives LandSec a 75% stake in MediaCity, a 37-acre media, digital and tech hub in Salford, Greater Manchester, the company said in a statement Wednesday. It’s the second deal to be announced by the London-based real estate company this week.

The firm has begun targeting so-called mixed use developments that include housing and other uses in a pivot away from its traditional model that focused on retail properties and the development of London offices. LandSec announced on Monday that it had reached a deal to buy developer U+I Group Plc, which specializes in regenerating run-down neighborhoods. 

“Mixed-use developments with a clear sense of place are becoming an increasingly important ingredient in the fabric of cities,” Chief Executive Officer Mark Allan said in the statement. “Opportunities to participate in large scale, established mixed-use developments are scarce and MediaCity is one such opportunity.”

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