MEPC’s long lease on land surrounding the famous Silverstone racing circuit, Northamptonshire, has been confirmed, paving the way for 2.5m sq ft of redevelopment.
The property company which is owned by the BT Pension Scheme, has paid £32m for a 999-year lease with the British Racing Drivers’ Club for the bulk of the 760-acre estate.
BRDC subsidiary Silverstone Holdings has secured planning consent for a 1.3m sq ft business park, a circa 370,000 sq ft education campus, three hotels, plus leisure and spectator facilities.
The MEPC deal ends the BRDC’s search for a partner for the £500m scheme, which began in February 2011. Harrods owner Qatar Investment Authority had been in the initial frame to partner the BRDC.
Stuart Rolt, chairman of the BRDC, said: “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.”
Chris Taylor, chairman of MEPC, said: “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.”
A redevelopment will be delivered over 10 years.
The agreement with MEPC does not include the development or management of the circuit itself.
PwC advised the BRDC; Dowley Turner Real Estate advised MEPC.
joanna.bourke@estatesgazette.com
