Disposal

RNS Number : 0875Q

Quintain Estates & Development PLC

13 October 2011

 



13 October 2011

Quintain Estates & Development plc

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

Quintain Realises £34m from Student Accommodation Asset

Quintain announces the disposal of its recently completed student accommodation scheme, Dashwood Studios, to a discretionary single client account of Rockspring Property Investment Managers.

The sale price of £34m compares with the 31 March 2011 site valuation of £14.7m and subsequent construction expenditure of £17.8m.

Dashwood Studios is located in Elephant & Castle and attracts residents from several London universities in the surrounding area. It contains 232 high quality studio rooms, multiple communal living spaces and retail units on the ground floor. The entire scheme is let for the current academic year and the retail units are under offer.

This disposal demonstrates Quintain's ability to generate returns by applying its expertise to opportunities in specific alternative sectors. Quintain purchased the scheme in February 2011 and has worked closely with the developer over the summer to achieve completion in time for the start of the current academic year.

Rebecca Worthington, Finance Director of Quintain, said:

"Our in-depth knowledge of the student accommodation sector enabled us to identify Dashwood as a valuable opportunity, work with the developer to achieve completion over the summer, drive 100% occupancy prior to the start of the academic year and then dispose of the asset at a profit.

"Given the current challenges in the debt markets, our priority as a Group is to continue to strengthen our financial position. As part of this strategy, we are extending the maturity of our existing facilities and continue to reduce the level of corporate debt through a measured programme of disposals. The proceeds from the sale of Dashwood Studios will be used to reduce our forecast gearing levels."

For further information, please contact:

Quintain Estates & Development plc                                               FTI Consulting

Rebecca Worthington / Cressida Curtis                                          Dido Laurimore / Laurence Jones

Tel:         [phone]                                                             Tel: [phone]

 

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