The British Racing Drivers’ Club (BRDC) has completed a 999-year lease transaction with British commercial property company MEPC covering the existing Silverstone Industrial Estate and development land around the circuit.
This agreement does not include the management or development of Silverstone Circuit itself.
MEPC is owned by the BT Pension Scheme, the UK’s largest corporate pension scheme, which also owns Hermes Fund Managers.
MEPC has paid GBP32m for a long-term lease. This payment has allowed the BRDC to pay off its long and short-term loans from Lloyds Banking Group and Northamptonshire County Council.
Stuart Rolt, chairman of the British Racing Drivers’ Club, says: “Following major improvements to Silverstone, including significant investment in the Grand Prix Circuit and building of The Wing, the BRDC Board was given a mandate three years ago to attract suitable partners to invest in Silverstone and help realise the full potential of its 760-acre estate. Over three years the board has given consideration to a number of offers from credible parties and we are delighted to have reached an agreement with MEPC, which was selected on the grounds of its financial standing, reputation, the quality of the developments it has undertaken - and continues to own - and the price it was prepared to pay.
“We have every confidence that their vision for our land will see the realisation of a high-quality development, which will add to the ever growing status of Silverstone as a world-class centre for motor sport and vehicle engineering. We are also confident that in MEPC we have a partner which fully appreciates the status of Silverstone as a race circuit, its history, the ethos of the BRDC and the importance of doing everything to ensure that reputation is enhanced in the future.”
Chris Taylor, chairman of MEPC, says: “As a long-term investor we are delighted to have secured this opportunity to create a large, commanding commercial estate with a key technology driver which will benefit hugely from its location, infrastructure and association with the home of world motor racing at Silverstone. The MEPC platform continues to demonstrate its ability to develop, manage and add value across its portfolio of major business estates in an innovative manner with a conviction to understand the needs of its occupiers as the key to its success.”