Tristan Capital Partners has signed an agreement to buy the 407 acre Cody Technology Park site in Farnborough, from defence and security company QinetiQ for £112m.
The acquisition has been made by European Property Investors Special Opportunities 6 (EPISO 6), a fund managed by Tristan Capital Partners, in a joint venture with XLB Property. Upon completion of the deal, which is expected within eight weeks, QinetiQ will enter into a 15-year lease for its existing footprint, with Cody Technology Park continuing to be the location for QinetiQ’s Group headquarters. QinetiQ currently operates from 60 sites globally, primarily in the UK, US and Australia.
QinetiQ has had a presence at Cody Technology Park since 2002 and currently occupies approximately a third of the space, with the remaining two thirds occupied by 96 other tenants, vacant, or used as common areas. Prior to this transaction, QinetiQ was responsible for the investment and maintenance of the whole site.
Ali Otmar, Senior Partner and Head of Investments at Tristan Capital Partners, said:
“This acquisition provides our EPISO 6 Fund with the opportunity to deliver a strategic investment programme for Cody Technology Park. We believe the long-term occupation and anchorage of QinetiQ, combined with our strategic vision and investment programme, will reinforce Cody as the premier research and development campus for the aerospace and defence industries across the UK and Continental Europe.
“The business plan involves substantial capital expenditure investment to improve the common areas, tenant accommodation and the overall tenant experience for QinetiQ and the 96 other tenants in the park. The aim is to create a vibrant, forward-looking environment that meets the evolving needs of businesses, and supports and grows the local economy.”
Tony Lawson, Senior Partner at XLB said:
“We are delighted to be working with Tristan and QinetiQ on this exciting project to deliver the vision for Cody Technology Park as the UK’s leading innovation centre for the aerospace and defence industry.”
Steve Wadey, Group Chief Executive Officer, QinetiQ, said:
“I’m delighted we have found a strategic partner committed to investing in Cody Technology Park and developing its long-term future as a centre of excellence in defence, science and technology in Hampshire.
“The sale of the site is aligned to our strategic priorities and underscores our commitment to focusing on our core business to deliver for our customers.
“We remain fully committed to Farnborough as the location of our Group headquarters and a major science and technology centre in the UK, and will become the principal tenant on the site.
“This deal will result in the launch of a programme of investment by Tristan Capital Partners to further develop and modernise the technology park for all current and future tenants, whilst allowing us to invest in the development of the Company consistent with our enhanced focus on capital allocation.”
As a result of this transaction, QinetiQ’s net debt is expected to improve by approximately £65m with a negligible reduction in underlying operating profit and operating cash flow due to the loss of tenant income.
ENDS
About Tristan Capital Partners
Tristan Capital Partners is a real estate investment manager, specialising in value-added investment strategies across all property types in the UK and Europe. Tristan’s pan-European real estate funds include core+, opportunistic and debt strategies, with total assets under management of over €15 billion and a loyal client base of institutional and private investors. The company was founded in 2009. Tristan’s headquarters are in London, and it has offices in Luxembourg, Paris, Amsterdam, Frankfurt. Milan and Madrid. Tristan is an affiliate of New York Life Investments. It is authorised by the Financial Conduct Authority and is MiFID compliant.
About XLB Property
XLB was established in 2009 and is a leading specialist in the UK commercial real estate sector. It currently manages circa £1bn of commercial assets on behalf of its investment partners. XLB has a strong track record of enhancing and repositioning business assets together with a pipeline of sustainable construction projects, to date it has completed approximately 2.5m sq ft of developments. Further information can be found at xlbproperty.com.
About QinetiQ
QinetiQ is an integrated global defence and security company focused on mission-led innovation. QinetiQ employs circa 8,500 highly-skilled people, committed to creating new ways of protecting what matters most; testing technologies, systems, and processes to make sure they meet operational needs; and enabling customers to deploy new and enhanced capabilities with the assurance they will deliver the performance required.
For further information please contact:
Claudia Cronshaw, Director, Tristan Capital Partners 07778 473119
Stephanie Mann, Group Head of Media Relations, QinetiQ 07770 720268