News release
QinetiQ
Group Plc
Sale and
leaseback of Cody Technology Park
30
September 2024 - QinetiQ Group plc
("QinetiQ" or the "Company") announces it has signed an agreement
for the sale of its 407 acre freehold site at Cody Technology Park
(CTP), Farnborough, to a fund[1] managed by
Tristan Capital Partners[2] (TCP) for
£112m.
QinetiQ occupies approximately a
third of the space at CTP 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.
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."
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 £112m will be received and QinetiQ will enter into a 15
year lease with TCP for its existing footprint. As a result of this
transaction, net debt is expected to improve by approximately £65m
with a negligible reduction in underlying operating profit and
operating cash flow due to the loss of tenant income.
Under IFRS 16 and right of use asset
accounting, a one-off, non-cash, accounting loss of approximately
£30m is expected to be recognised as a specific adjusting item at
completion. This will be calculated based on the varying values of
assets being sold and those being leased back.
About QinetiQ
QinetiQ is an integrated global
defence and security company focused on mission-led innovation.
QinetiQ employs circa 8,500 highly-skilled people, committed to
creating new ways of protecting what matters most; testing
technologies, systems, and processes to make sure they meet
operational needs; and enabling customers to deploy new and
enhanced capabilities with the assurance they will deliver the
performance required.
For
further information please contact:
Stephen Lamacraft, Group Interim
Director Investor Relations:
+44 (0)
7471 885817
Stephanie Mann, Group Head of Media
Relations (Media
enquiries):
+44 (0) 7770
720268