First Quarter Interim Management Statement

RNS Number : 1110L

Quintain Estates & Development PLC

07 August 2013

 



7 August 2013

Quintain Estates & Development PLC

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

First Quarter Interim Management Statement

Quintain, the London development and investment property specialist, today issues the following Interim Management Statement for the period from 1 April 2013 to 31 July 2013.

Highlights 

·     Planning permission secured for Peninsula Quays at Greenwich

·     London Designer Outlet over 70% let[i] ahead of October opening

·     iQ already 85% let for the new academic year starting in September

·     £115 million sterling bond issued

Max James, Chief Executive of Quintain, commented:

"Having secured three important planning decisions at Greenwich in July, Quintain is now well placed to accelerate the delivery of new homes in London into a strong market characterised by an acute shortage of supply.

"At Wembley, we are delighted with progress at London Designer Outlet, which is now over 70% let ahead of opening later this year and well placed to become a vibrant new retail and leisure experience for Londoners. We will shortly be submitting plans for the first phase of new homes at Wembley, under the new 'Wembley Park' brand.

"Our balance sheet continues to strengthen with last month's bond issue diversifying our funding sources. This demonstrates growing confidence in the re-vitalised Group and reflects the progress we are making in its re-positioning."

Greenwich Peninsula

The joint venture with Knight Dragon, which is delivering the 14 million sq ft development of Greenwich Peninsula, last month celebrated its first anniversary with three milestone planning decisions that propel the development into delivery mode:

·     a new master-plan for Peninsula Quays has been granted planning consent. This design, which provides for 1,683 apartments, two hotels and 90,000 sq ft of shops and restaurants, creates a new benchmark for the quality of cohesive development that will be delivered by the joint venture;

·     the Deed of Variation to the original Section 106 agreement, re-distributing the tenure of affordable housing, has been granted; and

·     planning permission has been granted for a four-storey central marketing hub facing The O2 on Peninsula Square, outside North Greenwich tube station. Construction of the Hub is anticipated to start this winter, underpinning the launch of residential marketing in 2014.

Together, these decisions improve the development potential and quality that is now being created at Greenwich Peninsula. They have enabled the joint venture to accelerate its delivery of homes into a market facing a shortage of quality housing, with construction to begin at Peninsula Riverside in the south of the site this autumn.

Wembley Park

Over 70% of contracts for London Designer Outlet are now exchanged or in solicitors' hands ahead of the opening at the end of October, with 11 new lettings agreed since the preliminary results announcement at the end of May. Fit-out of the cinema and restaurant units is taking place and preparation is underway for the October opening, ahead of the full launch in the new year. The opening will coincide with the launch of the new 'Wembley Park' brand, which is designed to underpin the first major phase of residential development on the site. The detailed planning application for these homes will be submitted this autumn and construction is anticipated to start next year.

Brent Civic Centre, which faces the Stadium and Arena, opened on 10 June. This has brought 2,000 employees to Wembley Park along with exhibition space, a new library and conferencing facilities, creating increased animation at the heart of the development. London Borough of Brent expects the Centre to attract one million people to the area every year.

Asset Management

The iQ student accommodation vehicle is securing strong lettings for the 2013/14 academic year. A week before A-Level results are published, the 5,183-bedroom portfolio is currently 85% let. This is ahead of the same point in the 2012/13 academic year, during which the portfolio achieved 97% occupancy, with average rents up by 2.7%.

Finance

On 29 July Quintain successfully completed the issue of a £115 million 6.5% seven-year secured Sterling bond, the net proceeds of which will be applied to refinance part of the Company's existing bank borrowings, with on-going maturities balanced between three and seven years, increasing the weighted average maturity to 2017.

Diversifying the sources of funding available to the Company, the bond issue increases liquidity and will provide stable, long term financing for Quintain at a competitive cost more closely aligned with the Company's asset profile and activities.

ENDS

Enquiries:

Quintain Estates and Development PLC                                                 

Max James, Chief Executive

Richard Stearn, Finance Director                                                      

Tel: [phone]                                                                              

RLM Finsbury Group

Jenny Davey / Charlotte Whitley

Tel: [phone]

Forward looking statements

This announcement is for information purposes only and contains certain forward-looking statements which, by their nature, involve risk and uncertainty because they relate to or depend upon future events and circumstances.

There are a number of factors which could cause actual results and developments to differ materially from those expressed or implied by these forward looking statements, including a number of factors outside Quintain's control. All forward-looking statements are based upon information known to Quintain on the date of this announcement and no representation or warranty is given in relation to them, including as to their completeness or accuracy or the basis on which they were prepared. Quintain gives no undertaking to update forward-looking statements whether as a result of new information, future events or otherwise. Information contained in this announcement relating to the Company should not be relied upon as an indicator of future performance.

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[i] Contracts exchanged or in solicitors' hands

 

END

 

 

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