The owner of Formula 1 racing circuit Silverstone is being forced to go back to market after talks to sell the site to a Qatari investor faltered.
The British Racing Drivers’ Club has been seeking a partner to help it deliver more than 4m sq ft of commercial development at the Northamptonshire race track since February last year. It signed an exclusivity agreement with a partner, believed to be the Qatar Investment Authority, last autumn. QIA was understood to be investing around £50m in the project.
But this week BRDC chairman Stuart Rolt admitted negotiations with its preferred investment partner had been slow and it had “not been able to agree satisfactory terms” for the 760-acre project.
He added: “The ideal partner would understand the value and the culture of the race circuit. There is a significant property element in the scheme, but the circuit is at the heart of any prospective deal.”
The process of selecting a partner has been marred by a reluctance from some BRDC members to hand control over to an investor, and disputes over pricing.
One source said it would be difficult in the current economic climate to find a long-term partner that would be willing to commit to developing the site.
He said: “There will be some sovereign wealth funds interested, but I think there will be a clash of cultures, with the BRDC wanting to have control over plans.”
Silverstone has planning consent for a 1.3m sq ft business park, a 674,488 sq ft technology park, a 373,055 sq ft education campus, three hotels and shops, as well as spectator and leisure facilities.
PwC is advising the BRDC.
joanna.bourke@estatesgazette.com
