QinetiQ Group plc has announced an agreement for the sale and leaseback of its 407-acre site at Cody Technology Park (CTP) in Farnborough in a £112 million deal.
QinetiQ, which has agreed the transaction with a fund managed by Tristan Capital Partners, occupies around a third of the space at CTP for its head offices. The remaining two thirds of the park consists of space occupied by 96 other tenants, vacant space and common areas.
The acquisition was made by European Property Investors Special Opportunities 6 (EPISO 6) – a fund managed by Tristan in a joint venture with XLB Property.
Prior to the deal, QinetiQ was responsible for the investment and maintenance of the whole site.
Steve Wadey, group chief executive of 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 to Tristan Capital Partners 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.”
Ali Otmar, senior partner and head of investments for Tristan Capital Partners, said: “This acquisition provides the 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.”
Once the deal completes deal, expected within eight weeks, QinetiQ will enter a 15-year lease with TCP for its space.
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