A European fund managed by Tristan Capital Partners partnered with XLB Property to acquire the UK headquarters of global defence and security company QinetiQ in a £112m (€134m) sale and leaseback.
Tristan’s European Property Investors Special Opportunities (EPISO) 6 has acquired Cody Technology Park in Farnborough as part of a 15-year leaseback deal with QinetiQ which has been a tenant at the park since 2002 and currently occupies a third of the space.
The remaining two-thirds is filled with a mix of 96 tenants, vacant space and common areas. Before the sale agreement, QinetiQ was responsible for all investments and maintenance at the 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.”
Otmar added that the business plan for Cody 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 CEO at QinetiQ, said: “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.”
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