QinetiQ Group has agreed a £112m sale and leaseback deal with Tristan Capital Partners and XLB Property for Cody Technology Park in Farnborough.
The defence and security company occupies approximately a third of the space at the 407-acre freehold site, with the remaining two-thirds occupied by 96 tenants.
On completion of the deal, QinetiQ will enter into a 15-year lease with Tristan Capital Partners for its existing footprint.
The acquisition is being made by European Property Investors Special Opportunities 6 (EPISO 6) – a fund managed by Tristan in a joint venture with XLB.
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.”
Tony Lawson, senior partner at XLB, added: “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 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.”
