Peel Holdings is to develop a new 100,000 sq ft higher education centre for the University of Salford in its Media City development at Salford Quays, Manchester.

The university has agreed to lease the development from Peel’s subsidiary Peel Media when it completes in 2011.

It is the second tenant to sign up for the development following the BBC’s decision to move five of its departments to the scheme.

The campus will include broadcast and digital media facilities, a virtual laboratory, digital performance space and creative spaces for use in academic teaching.

John Holland, a former head of interactive TV and digital text services, has been appointed by the university to lead on its new initiatives at the development.

The university is already a higher education partner with the BBC, which has signed up for 330,000 sq ft for its BBC Sport, Children’s, Future Media and Technology, Radio 5 Live and Learning divisions.