McLaren puts Woking HQ up for sale to raise funds – paultan.org

Now this is rather sad news. McLaren has put up its iconic Woking headquarters for sale in an attempt to raise funds. According to Sky News, the British supercar maker has instructed property agent Colliers to start marketing a sale-and-leaseback for £200 million (RM1.07 billion).

Built in 2004, McLaren’s Woking base is a three-in-one, comprising the McLaren Technology Centre, the newer McLaren Production Centre – used mainly for road car manufacturing by McLaren Automotive – and the McLaren Thought Leadership Centre. The whole lot are part of the proposed sale-and-leaseback. Should a new owner be found, McLaren would lease the property back and remain at the site.

A McLaren spokesperson told Autocar that the company is expecting offers “in excess of £200m” and expects the HQ to be sold by the end of this financial year.

“The potential sale and leaseback of our global headquarters and the appointment of banks to advise us on a debt restructuring and equity raise are part of the comprehensive refinancing strategy that we announced earlier this year,” the spokesperson told the British mag.

“Building on the shorter-term measures that we put in place over the summer, these initiatives will deliver a stronger balance sheet and ensure that McLaren Group has a sustainable platform for long-term growth and investment,” he/she added.

The financial troubles McLaren is facing is no thanks to the Covid-19, and this latest move is a bid to improve its cashflow, as revenues have been greatly affected. In May, the company cut 1,200 jobs (more than 25% of its workforce) across its three divisions – Applied, Automotive and Racing.

McLaren had also sought to borrow up to £275 million (RM1.46 billion) by pledging its classic car collection and Woking HQ, securing a £150 million (RM799 million) loan from the National Bank of Bahrain.

“This is undoubtedly a challenging time for our company and particularly our people, but we plan to emerge as an efficient, sustainable business with a clear course for returning to growth. McLaren Applied has also already refocused to strategically prioritise proven, high-growth revenue streams,” said Paul Walsh, McLaren Group executive chairman.

The maker of the F1 and Senna supercars is one of the biggest and most traditional names in Formula 1, and it cited the cancellation of motorsport events as one of the coronavirus effects damaging its business. The suspension of manufacturing, lower global sales and reduced demand for tech solutions are the other problems it is facing. Here’s hoping that McLaren will pull through this difficult period.

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