Tristan Capital Partners and XLB have bought Cody Technology Park in Farnborough from QinetiQ in a sale-and-leaseback transaction with the science and technology giant for £112 million.
QuinetiQ occupies approximately a third of the space at the 407-acre park, with the remaining two thirds occupied by 96 other tenants, vacant, or used as common areas. Prior to the transaction, QinetiQ was responsible for the investment and maintenance of the whole site. Tristan has bought the campus for its European Property Investors Special Opportunities 6 (EPISO 6).
Steve Wadey, group chief executive Officer of QinetiQ, said in a statement: "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 at 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."
Upon completion of the deal, which is expected within eight weeks, a cash receipt of £112 million will be received and QinetiQ will enter into a 15-year lease with TCP for its existing footprint.
Colliers advised QinetiQ while Hollis Hockley advised Tristan and XLB.