McLaren agrees £170m sale and leaseback of F1 factory

McLaren has agreed a £170 million sale and leaseback deal for its Woking Formula 1 and automotive factory.

McLaren agrees £170m sale and leaseback of F1 factory

Following months of negotiations aimed at selling the 840,000 square foot facility, a deal was announced on Tuesday for the factory to be bought by American company Global Net Lease (GNL).

The transaction is expected to be completed in the second quarter of this year and will include a 20-year lease for McLaren.

James Nelson, CEO of GNL, said: “We are excited to announce that this world-class facility will become part of the GNL portfolio.

"The McLaren Group Headquarters' state of the art buildings have won numerous awards, were designed by renowned architect Norman Foster, and are the type of mission-critical, net-leased properties that make up the GNL portfolio.”

McLaren faced serious cash flow issues last year and, as it looked for ways to bolster its finances, it believed there was no benefit to having cash locked up in its factory facility.

It pursued a sale-and-leaseback deal to help deliver an instant financial boost, as it allows it to capitalise on the expansive facility in Woking and then reinvest that money in the company.

Daniel Ricciardo, McLaren MCL35M

Daniel Ricciardo, McLaren MCL35M

Photo by: Mark Sutton / Motorsport Images

Speaking last year, McLaren CEO Zak Brown explained: "Why have all this money tied up in real estate? We're not a real estate company. We're a racing team and an automotive company. And that's the start of the journey to start cleaning up the balance sheet [at McLaren].

"I think the majority of companies in this world don't actually own the real estate that they are tenants of.

"We've got a lot of cash tied up in that building, as you can imagine, and that's not a very productive use of funds when you're looking to invest in your business.

"So we'll ultimately sell it to someone. We will then do an extremely long term lease and then we'll use that money to invest in our business to help us grow our business. So it's a pretty typical financial restructuring exercise."

Since the initial plans to sell the factory, McLaren’s financial situation has improved. Last year the team arranged a £150 million loan with the National Bank of Bahrain as well as attracting new American investors MSP Sports Capital, who bought a significant minority share in the team for £185 million.

shares
comments

Related video

Alonso: Playing catch up in F1 is no excuse for current form
Previous article

Alonso: Playing catch up in F1 is no excuse for current form

Next article

How “overwhelming” McLaren move has given Ricciardo a new verve

How “overwhelming” McLaren move has given Ricciardo a new verve
The Moss-Ferrari farce that current F1 drivers are thankfully spared Plus

The Moss-Ferrari farce that current F1 drivers are thankfully spared

Recent moves within the driver market have reminded MAURICE HAMILTON of a time when contracts weren’t worth the paper they weren’t written on…

Audi’s innovative first assault on grand prix racing Plus

Audi’s innovative first assault on grand prix racing

It has been a long time coming but Audi’s arrival in Formula 1 is finally on the horizon for 2026. But it won’t be its first foray into grand prix racing, as the German manufacturer giant has a history both long and enthralling

Formula 1
Sep 23, 2022
The seven factors powering Verstappen's 2022 F1 domination Plus

The seven factors powering Verstappen's 2022 F1 domination

After a tooth and nail and, at times, toxic Formula 1 world championship scrap last year, Max Verstappen's march to a second consecutive title has been the exact opposite. But has he really changed in 2022? Here's a dive into what factors have played a crucial role, both inside the Verstappen camp and elsewhere, in the Dutch driver's domination

Formula 1
Sep 23, 2022
Why Hamilton is still the man to keep driving Mercedes forward Plus

Why Hamilton is still the man to keep driving Mercedes forward

Lewis Hamilton’s words in a recent Vanity Fair interview define both his world-view and his approach to this season: one of perpetual struggle against adversity. As GP RACING explains, that’s what Lewis feeds off – and why, far from being down and nearly out, he’s using his unique skillset to spearhead Mercedes’ revival…

Formula 1
Sep 22, 2022
The time lag of ideas that offers intrigue over F1's future fight Plus

The time lag of ideas that offers intrigue over F1's future fight

The pecking order in 2022's Formula 1 season may look pretty static as the season draws to a close, but the unique nature of the cost cap means that preparation for next season takes precedence. New developments are being pushed back to 2023 - which could mask the technical development war ongoing...

Formula 1
Sep 22, 2022
How one retro event could prove an alluring prospect for Formula 1 stars Plus

How one retro event could prove an alluring prospect for Formula 1 stars

While Formula 1 drivers taking part in retro events can prove costly, as Charles Leclerc discovered at the Monaco Historic Grand Prix, the Goodwood Revival could prove an interesting experiment for today's stars. As the event's own Tourist Trophy race proves it means serious business, a race for current F1 drivers feels as though it’s in line with where the event is currently at

Goodwood Revival
Sep 21, 2022
The surprise biggest indicator of Ferrari's 2022 F1 points downfall Plus

The surprise biggest indicator of Ferrari's 2022 F1 points downfall

Looking back to the early races of 2022 and Ferrari’s challenge to Red Bull and Max Verstappen was going better than many expected. But it has lost so much ground a surprise rival can even pip Charles Leclerc to runner-up in the standings if given the chance

Formula 1
Sep 20, 2022
How Tyrrell and Stewart forged parallel paths to F1 stardom Plus

How Tyrrell and Stewart forged parallel paths to F1 stardom

The young Ken Tyrrell was barely 
aware of motor racing – until a trip with 
his village football team to the British
 Grand Prix set him on the road to
 becoming a Formula 1 constructor. MAURICE HAMILTON details the humble beginning of Tyrrell and how Ken linked up with Jackie Stewart…

Formula 1
Sep 19, 2022