McLaren could mortgage factory and classic F1 cars
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McLaren is considering mortgaging its factory and classic Formula 1 cars in an attempt to raise funds to see it through the financial uncertainty caused by the coronavirus crisis.Sky News reports that the British F1 team owner McLaren Group is in talks to raise up to £275m by mortgaging its iconic Surrey headquarters and one of the world’s most valuable historic car collections.The strategy is being pursued by McLaren and its advisor JP Morgan after it emerged the UK government’s Department for Business, Energy and Industrial Strategy had rejected a £150m loan plea.The supercar maker is looking to shore up its balance sheet after taking a financial hit due to a lack of sales and loss in revenue with the 2020 F1 season currently suspended amid the ongoing COVID-19 pandemic.Historic cars at McLaren’s Woking HQ feature F1 world championship winners including those of Niki Lauda (1984), Alain Prost (1989), Ayrton Senna (1990 and 1991), Mika Hakkinen (1998 and 1999) and Lewis Hamilton (2008).According to Sky News, the McLaren car collection is valued up to £250m and its factory at around £200m.McLaren, which employs 4,000 people, is using the government’s furlough job retention scheme for members of staff from all three divisions of its organisation. A McLaren spokesperson said: “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.”Back in March, the company’s shareholders – led by Bahrain’s sovereign wealth fund Mumtalakat – pushed £300m of equity into McLaren. Saudi Arabian businessman Mansaour Ojjeh is also believed to have contributed towards the fundraising.
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