McLaren Group is reportedly seeking additional funding by mortgaging the company’s iconic headquarters in Woking, UK, as well as their historic car collection.
As reported by Sky News, the British carmaker and F1 team owner is seeking to raise up to £275 million ($333 million in current exchange rates) in a bid to deal with the financial impact of the coronavirus outbreak.
McLaren’s collection of historic cars is believed to be worth more than £250 million ($303 million), with individual models said to be valued at tens of millions. In addition, McLaren’s Technology Center in Woking is estimated at over £200 million ($242 million) on a standalone basis.
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The same sources added that it could also raise funds in the form of new bonds, from existing or new bondholders. The funds would be then repaid “at the earliest opportunity”, the sources added.
The automaker’s pursuit of additional funding is believed to be accelerated as a result of the UK government rejecting its request for a £150 million loan. McLaren approached the government after sales collapsed in the wake of the COVID-19 outbreak.
Government officials reportedly said that the UK rejected McLaren’s request as the company had not yet demonstrated that it had exhausted alternative sources of financing. In March, the automaker’s shareholders injected £300 million of equity into the company.
“Like many other British businesses McLaren has been severely affected by the current pandemic and we are therefore exploring a variety of different funding options to help navigate these short-term business interruptions,” a company spokesman said.
While McLaren seems to be heading towards stormy seas, another supercar maker, Ferrari, is fairing a lot better having managed to increase deliveries by 5 percent to 2,738 units while revenue fell only 1 percent to $1.02 billion, exceeding analysts’ expectations of $852 million in the first quarter of 2020. It remains to be seen how the Italian brand will do in the second quarter.