BRDC ends second Silverstone investor talks
7 May 2014 – Negotiations with a second potential investor in Silverstone have been terminated, the British Racing Drivers' Club has announced.
The BRDC had been looking to secure a second commercial investment to help 'realise the full potential of Silverstone and its 760-acre Estate'. The second deal concerned the leasing of the circuit itself and the sale of the Silverstone Circuits Limited (SCL) business. However the BRDC has now decided to shelve those plans, 'at least for the time being', and will now focus on 'delivering in two months time another excellent Formula 1 British Grand Prix'.
"After intense efforts to secure an acceptable deal, we have not been able to bring negotiations with the second potential investor to a satisfactory conclusion," John Grant, Chairman of the BRDC explained. "The BRDC will now retain full ownership of SCL, whose highly experienced management team will continue to operate, promote and further develop Silverstone as a premier racing destination."
"As the authority granted by Members to the Board to secure a [second] deal has now expired, no further agreements of this nature will be entered into without first communicating with Members," the BDRC statement added.
The first investment, announced by the BRDC on 11 September 2013, was completed with British commercial property company MEPC, who acquired a 999-year lease on the existing Silverstone Industrial Estate and development land around the outside of the circuit. The resulting receipt of £32 million enabled the BRDC to pay off all its borrowings.
"With or without another investor, the futures of both Silverstone and the British Grand Prix are secure," Grant insisted. "The circuit business has enormous potential and MEPC's development of Silverstone Park - a high-tech business park on land surrounding the circuit - will enhance the circuit's image and value over the next several years.
"We are delighted with the progress MEPC is already making. They are proving to be excellent partners and strong believers in our shared vision for Silverstone. We look forward to working with them towards implementing our joint vision for the development of Silverstone as a globally recognised centre for world-class motor sport and advanced technology."