McLaren agree £170m deal for Technology Centre

McLaren

McLaren agree £170m deal for Technology Centre

McLaren has signed a 20-year sale and leaseback deal

Ian Parkes

Tuesday 20 April 2021 14:10 Updated: 14:48

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McLaren Group has agreed a £170million sale of its Technology Centre with US-based real estate investment trust Global Net Lease.

With the deal confirmed on the New York Stock Exchange, McLaren has signed a 20-year sale-and-leaseback agreement with GNL that is expected to be completed over the next two months.

GNL focuses on acquiring a diversified global portfolio of commercial properties, with an emphasis on sale-leaseback deals across the US and Europe.

The deal also includes the McLaren Production Centre and Thought Leadership Centre.

GNL CEO James Nelson said: "We are excited to announce that this world-class facility will become part of the GNL portfolio.

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"The McLaren Group headquarters' state-of-the-art buildings have won numerous awards, were designed by renowned architect Norman Foster, and are the type of mission-critical, net-leased properties that make up the GNL portfolio.

"We are very pleased to have been able to collaborate and work with the management team of the McLaren Group to effect this transaction.

"We look forward to the long-term partnership with McLaren and the benefits this transaction will have to GNL."

McLaren Group had previously been in advanced negotiations with global investment firm TPG, but GNL has now stepped in.

McLaren confirmed last year it was hoping to secure a sale-and-leaseback option on its state-of-the-art facility that has been its home for the past 17 years.

As a Group that incorporates not only the racing team, but also Automotive in terms of its car manufacturing and its technology arm with Applied, the company was hit severely last year by the Covid-19 pandemic.

That resulted in McLaren making 1200 of its staff redundant, around 30 per cent of its total workforce, whilst it was also forced to seek additional outside investment.

After securing a £150million loan from the National Bank of Bahrain in late June, that was followed up in December by a £185million injection from investment company MSP Sports Capital in December in return for 15 per cent of the Racing division.

In a statement, McLaren has confirmed the proceeds of this deal "will be used to reduce the Group's leverage and underpin the Group's strengthened financial position".