Tristan Capital Partners has signed an agreement to buy the 407-acre (165 ha) Cody Technology Park site in Farnborough, from defence and security company QinetiQ for £112 mln (€134 mln).
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 CEO, 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.
'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 £65 mln with a negligible reduction in underlying operating profit and operating cash flow due to the loss of tenant income.
