McLaren sold iconic MTC headquarters to US investment company
Apr.23 - McLaren has sold its iconic headquarters, including the Formula 1 factory, for almost $240 million.
A New York-based real estate investment company called Global Net Lease announced the deal earlier this week, revealing that it will acquire the full Woking facility and enter a "20-year, NNN lease".
A so-called 'triple-net' lease means the tenant - in this case to be McLaren - no longer owns the property but pays for all of the expenses.
"Why should we have all of our money in real estate?" Italy's La Gazzetta dello Sport quotes McLaren supremo Zak Brown as saying.
"We are not a real estate company - we are a racing team and automotive company. There is a lot of money in this building and it's not a productive advantage when we want to invest in our business," he added.
Initiated by Ron Dennis in 1998, the award-winning McLaren Technology Centre was originally called 'Paragon' and designed by renowned architect Norman Foster.
"We look forward to the long-term partnership with McLaren and the benefits this transaction will have to Global Net Lease," said the New York-based company's chief executive James Nelson.
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Another of Zaks talents i see , hes also a commercial property expert ahhhh i see
Another form of asset stripping god bless america
You can only flog the silver once. And then it costs you forever.
Very worrying indeed.
I used to absolutely love this Team. Until they kicked out Ron.
Yup. Dropping Ron was bad, but Mclaren is still cool. Zak should drop 30# and not sell all the assets. Looks desparate....
The profit from the sale won’t cover one year’s operating expenses for the team. Now they have to pay rent somewhere. I see no genius here, as he follows the foolish pattern of his American corporate compatriots.
Great building, great architect with fantastic vision, only to be sold by the stroke of an accountants pen, i thought businesses like mclaren were clever and used other peoples money, it seems as you say flog the family silver only once, for all Rons faults and genius , hed never have done this to the team .
I agree entirely. American approach. Fails and costs in the end. Bring back Ron who stood for McLaren.
I see what your saying and i guess what all dont take into consideration is the bonus and hereditary money the teams get, amazingly Mac F1 last yr earnt 152 Million $ so cost caps mmmm not really relevant when you add all the sponsor money into the https://www.sportekz.com/f1/formula-one-prize-money/ or am i reading this wrong?
A bit of a worry. Losing absolute control of you premises is seldom a good long term solution. In real estate terms it looks like a bargain for the purchaser.
As a landlord, I can say that rent goes on forever, but cash does not.
Maybe the Arabs are losing interest in Mclaren.... will they sell there shares soon? if the F1 team rise in value , wouldn't put it past them, sure they'll be other investors, but few with as deep pockets .
Well there's a surprise let's sell it all off and be tied into a lease sell it to the yanks, such a pity Ron's no longer there sadly missed at McCartney.
It would be interesting to hear what all the commentators who are deriding McLaren would do in Zac Brown's position
Let's hear all your insights and the best way forward if you feel you can do better. I doubt it
I would lease out the building, either to one tenant, or subdivide It to multiple tenants and have a permanent cash flow. With the world coming out of it’s shell now business should be good.
Alternatively, I would advertise skilled manufacturing services for hire on a production basis.
Use your imagination, but don’t sell your assets for short term cash gain.
only problem with your statement is the building full to the brim with Mclaren So not sure what your on about
We arent knocking Zac B , it will have been the bod or major shareholders decision to sell, ZB says he needs more cash and thats that, but obv they couldnt raise cash from existing shareholders so decided this was the way to go, ZB just commenting on the sale the same as we are,all most are saying on here is that its the wrong decision, never sell your assets..... borrow against them at the least surely a good rule of business. ,
Actually , what i thinks happened is Ron has secretly bought it back just to Piss the Arabs off.
That would be funny! ;)
Is Mclaren strapped for cash? Doesn"t mention thst 'need' in the article. Arabs may want some money back before they bail? Lower taxes after rent deduction? There are a lot of scenarios here...
Yes it is, Swede. It doesn't hide the fact either.
Funny isnt it , just cant imagine Maranello being sold off, iconic building that stood for Maclaren and its history, business is business but for a lot of motorsport fans a sad event
Can anyone imagine Ferrari doing a high interest sale and leaseback on Maranello, a couple of years after kicking out Enzo?
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