QinetiQ Announces Sale of Cody Technology Park for £112m

QinetiQ Group plc is pleased to announce the sale of its 407-acre freehold site at Cody Technology Park (CTP) in Farnborough. The transaction, valued at £112 million, has been signed with a fund managed by Tristan Capital Partners (TCP).

Cody Technology Park, which hosts QinetiQ as its largest tenant, has been home to approximately 96 other tenants. QinetiQ occupies about a third of the site, while the remaining two-thirds consist of tenanted areas, vacant spaces, and common facilities. Prior to the sale, QinetiQ managed the site’s maintenance and investment needs.

With the completion of this sale, anticipated within the next eight weeks, QinetiQ will receive a cash inflow of £112 million. As part of the agreement, QinetiQ has committed to a 15-year lease with TCP, securing its existing operational space at the park. This transaction is expected to improve QinetiQ’s net debt position by approximately £65 million, while having a negligible impact on the company’s underlying operating profit and cash flow, despite the loss of tenant income.

In accordance with IFRS 16 accounting standards and right-of-use asset accounting, the company expects to record a one-off, non-cash accounting loss of approximately £30 million. This will be treated as a specific adjusting item, with the final value based on the assets being sold and those leased back.

QinetiQ remains committed to its operations at Cody Technology Park and looks forward to maintaining its presence as a key tenant under the new ownership.