McLaren selling Woking site

[TwentyFive]

McLaren having put their Woking base up for sale for £200m.

https://www.cityam.com/mclaren-puts-iconic-woking-hq-up-for-sale-for-200m/

That is a huge move for McLaren to make in order to sort out their finances.

The article suggests the plan is to sell it and then lease it back from a prospective buyer.

Edited by TwentyFive on Thursday 10th September 16:28

[sgtBerbatov]

Your URL don't work.

As for the article, well if they couldn't mortgage the cars what else had they left?

Come in Mr.Dennis, Mr.Dennis come in please, prospective landlord opportunity has arisen in your area...

[troc]

Try this:

https://www.cityam.com/mclaren-puts-iconic-woking-...

[Olympus593]

Go on Bernie you know you want to.

[DanielSan]

Why sell it and lease rather than borrow against?

[Caddyshack]

DanielSan said:

Why sell it and lease rather than borrow against?

If nobody wants to lend to them The alternative Is to sell and then rent it. I expect they explored the first option.

[Evolved]

DanielSan said:

Why sell it and lease rather than borrow against?

Creditors deem them high risk.

[rscott]

Evolved said:

DanielSan said:

Why sell it and lease rather than borrow against?

Creditors deem them high risk.

Not sure it's always that.

Sky sold the Osterley site on a similar deal a few years ago - https://www.egi.co.uk/news/skys-545m-dish/ - and I don't think they were a high risk company.

[DanielSan]

rscott said:

Evolved said:

DanielSan said:

Why sell it and lease rather than borrow against?

Creditors deem them high risk.

Not sure it's always that.

Sky sold the Osterley site on a similar deal a few years ago - https://www.egi.co.uk/news/skys-545m-dish/ - and I don't think they were a high risk company.

Is there some sort of text relief on leasing property instead of owning it? Would be a nice bonus on top of the 200mil cash injection from selling the place

[Chrisgr31]

DanielSan said:

Is there some sort of text relief on leasing property instead of owning it? Would be a nice bonus on top of the 200mil cash injection from selling the place

Doesnt it become a liability on the balance sheet if they rent?

[TheDeuce]

DanielSan said:

rscott said:

Evolved said:

DanielSan said:

Why sell it and lease rather than borrow against?

Creditors deem them high risk.

Not sure it's always that.

Sky sold the Osterley site on a similar deal a few years ago - https://www.egi.co.uk/news/skys-545m-dish/ - and I don't think they were a high risk company.

Is there some sort of text relief on leasing property instead of owning it? Would be a nice bonus on top of the 200mil cash injection from selling the place

No. It's just a way of releasing assets back in to the cash flow. I'm actually surprised they don't have loans leveraged on the property to the extent that selling it is even worthwhile - but I guess they don't.

In smaller businesses there is a value in the shareholders owning the property and leasing it back to the business. Albeit slender these days.

[williamp]

Coincidentally I was in woking recently, Mclaren are everywhere. Yes they the famous building...

..but also an office block in the town centre...and also lots of units around Albert Drive. I went to try and find where the F1 road cars were made. Mclaren have loads of units there, all under different names.

[Big Nanas]

williamp said:

Coincidentally I was in woking recently, Mclaren are everywhere. Yes they the famous building...

..but also an office block in the town centre...and also lots of units around Albert Drive. I went to try and find where the F1 road cars were made. Mclaren have loads of units there, all under different names.

The F1 road car was built in one of the Albert Road facilities. I'm local and fondly remember following a test F1 back and actually got out the car to ask to have a look around. The test drivers were more than happy to allow it!
Fond memories!
I think the actual assembly building is now the McCarthy and Stone offices, which is near the petrol station/used car dealers.
Opposite that site is McLaren racing which I think builds the GT3 cars - there are always other road cars there and the F1 transporters. Its great being a local and seeing so many driving around on a daily basis.

Edit. Also in further anecdotes, my (now wife)'s ex bf works at McLaren and she was invited to the opening of the MTC, and I went to school with Ron Dennis' nephew.

Edited by Big Nanas on Friday 11th September 07:47

[sgtBerbatov]

Big Nanas said:

my (now wife)'s ex bf works at McLaren and she was invited to the opening of the MTC

Edited by Big Nanas on Friday 11th September 07:47

Oh aye?

[hyphen]

Chrisgr31 said:

DanielSan said:

Is there some sort of text relief on leasing property instead of owning it? Would be a nice bonus on top of the 200mil cash injection from selling the place

Doesnt it become a liability on the balance sheet if they rent?

Yes,

There were recent IFRS changes to ensure this https://maxxia.co.uk/blog/simplified-look-ifrs-16-...

[Muzzer79]

Evolved said:

DanielSan said:

Why sell it and lease rather than borrow against?

Creditors deem them high risk.

That can be one reason

However, there's also the argument of why have cash tied up in property?

[rdjohn]

How long will it be before the asset strippers at Williams pull a similar deal?

It is just pleading for a half decent deal, but it will help both teams survive.

[rscott]

rdjohn said:

How long will it be before the asset strippers at Williams pull a similar deal?

It is just pleading for a half decent deal, but it will help both teams survive.

Quite a while - the venture capital firm involved aren't like many others. They represent a single family and tend to invest for the long term.

[The Moose]

Muzzer79 said:

However, there's also the argument of why have cash tied up in property?

Because just like in one’s personal life, it gives stability to their setup for the future.

[Hugo Stiglitz]

Not good. This doesn't bode well for the teams long-term health?