Disposal

RNS Number : 5023A

Quintain Estates & Development PLC

09 October 2009

 



9 October 2009

Quintain Estates & Development plc

("Quintain" / "Company" / "Group")

QUINTAIN ANNOUNCES THE ACHIEVEMENT OF ITS CASH REPATRIATION TARGET WITH THE SALE OF SHARES IN MERIDIAN DELTA DOME LTD

Quintain announces the disposal, with its joint venture partner Lend Lease Europe Ltd, of the entire share capital held in Meridian Delta Dome Ltd ("MDDL"), the holding company for the 999 year lease of the Millennium Dome, for £24.0m to Trinity College, Cambridge. 

As a 49% shareholder in MDDL, Quintain has received a total consideration of £11.8m which, together with other transactions undertaken since 1 April 2009, will bring the total amount of cash repatriated by the Company to £55.3m. This exceeds the £50m Quintain had targeted to raise in the year to 31 March 2010. The total cash repatriated by the Group since 1 April 2008 is now £152.8m.

Through this transaction, Trinity College will acquire the rental income that is paid by AEG via its under-lease of The O2. This rental income is linked to ticket sales of The O2 Arena and in Quintain's last financial year the Company's share amounted to £842,000. The disposal does not affect AEG's lease or their operation of The O2, in which they have invested £350m.

Quintain and Lend Lease continue to own and manage the regeneration of the surrounding 150 acres through the Greenwich Peninsula Regeneration Ltd ("GPRL") joint venture. 

Rebecca Worthington, Quintain's Finance Director, commented:

"We are delighted that, just half way through our financial year, we have already exceeded our full year target of repatriating £50m, strengthening our balance sheet even further. The strategy we announced in August 2008 has now resulted in a total of £152.8m of cash being repatriated. Combined with the new flexibility in our interest cover covenants and enhanced protection of our extended gearing covenant headroom, our financial position is considerably strengthened."

For further information, please contact:

Quintain Estates & Development plc

Rebecca Worthington / Cressida Curtis

Tel:    [phone]

Financial Dynamics

Stephanie Highett / Dido Laurimore / Laurence Jones 

Tel:    [phone]

 

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