Disposal

RNS Number : 2016I

Quintain Estates & Development PLC

10 June 2011

 



10 June 2011

Quintain Estates and Development PLC

("Quintain" / Company" / "Group")

Sale of Wembley Student Accommodation to

Keystone & Partners Real Estate S.A. ("Keystone")

Quintain announces it has entered into a forward commitment with Keystone for the development of the 660-bed student accommodation at Wembley City on a plot of land adjacent to Wembley Stadium. Keystone will purchase a long leasehold interest in the land of 251 years for a total consideration of £14.5m. In a separate development agreement, Keystone will make a further payment totalling £38.5m to Quintain, following practical completion of the building, which is expected to be in the summer of 2012.

Separately, Real Partners S.A. has agreed the purchase of five self-contained three-bedroom residential units, which form part of the development, for a total consideration of £1.5m. On practical completion of the building, Keystone and Real Partners S.A. will pay Quintain modest annual index-linked ground rents.

Commenting, Adrian Wyatt, Quintain's CEO said "This is great news for Wembley City and also marks the early achievement of one of our key milestones in the current financial year. Through this agreement we have not only retained an interest in the site and the management of the asset, but also demonstrated that Wembley City offers attractive opportunities for investors, at a price which supports our underlying land value assumptions.

"Furthermore, by bringing a substantial number of people to live at the scheme it will add to the growing vibrancy around Wembley City and support our other commercial activities in the area."

Giorgio Laurenti, Chairman of Keystone Group, a Swiss based real estate development company with offices in Wollerau, London and Luxembourg added: "We are delighted to take this opportunity as a starting point for our student accommodation initiative in the UK. We strongly believe in Wembley City as an attractive and vibrant location for students due to its proximity to reputable universities, the Civic Centre and its ability to offer students new modern housing, entertainment facilities and real job opportunities."

The student accommodation forms part of Quintain's Wembley City 8m sq ft regeneration project and lies adjacent to Wembley Stadium and Quintain's Hilton Hotel development.

Quintain has agreed terms with the University of Westminster for a nominations agreement over 481 bedrooms 'clustered' into 80 six en-suite bedroom units with shared kitchen/living areas. The student accommodation is located between the University of Westminster's Harrow and Marylebone campuses. The balance of the accommodation comprises 179 one-bedroom studio apartments. Quintain will manage the student accommodation on behalf of Keystone.

As at 31 March 2011, the land and buildings under construction were valued in Quintain's accounts at £21.1m. Based on the sums due from Keystone and Real Partners totalling £54.5m, Quintain estimates that it will achieve a surplus over the March valuation of some £3.5m and a surplus of £5.2m over cost.

The agreement with Keystone is through Quintain's subsidiary company Quintain W05 (Groundlease) Limited. Real Partners SA is a related party to Keystone.

For further information, please contact:

Quintain Estates and Development PLC

Rebecca Worthington / Emma Villiers

Tel:      [phone] (or [phone] before 9.00am)

Financial Dynamics

Stephanie Highett / Dido Laurimore / Laurence Jones

Tel:      [phone]

 

END

 

 

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