Interim Management Statement

RNS Number : 9044A

Quintain Estates & Development PLC

09 February 2011

 



9 February 2011

Quintain Estates & Development plc

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

Third Quarter Interim Management Statement

Quintain Estates and Development today announces its interim management statement for the period from 30 September 2010 to 31 December 2010.

Adrian Wyatt, Quintain's Chief Executive, commented:

"Quintain's focus remains on the build-out of Wembley City and the acceleration of our Fund Management business, in line with the 2013 business plan. Good progress has been made towards the creation of a new income-generating fund and we also expect to achieve our target of £1.25bn funds under management by the year end."

Business update

Fund Management

The Fund Management team continues to make progress in relation to the remaining milestones for the current financial year. The Company continues to progress opportunities to support the achievement of the near-term target of £1.25bn of funds under management. If concluded, this will increase momentum towards achieving the longer-term objective of £2bn of funds under management by March 2013, which will deliver increased recurring income for the Group from resilient sectors of the real estate market.

Quercus

Quercus performed in line with the proxy IPD benchmark over the last quarter of 2010 and saw a marginal uplift in valuations. The fund continues to be the best performing specialist fund in the IPD over five years, having delivered a return of 7.4% per annum versus the Specialist Funds Index of -6.2% per annum. Purchases totalling £64.4m were undertaken by Quercus during 2010, with commitments made to a further £57m of acquisitions.

iQ

Lettings for the current academic year remain strong at 97% (2010: 91%) and pre-lets for the 2011/12 academic year are in line with the same point in 2010 at circa 35%.

With the opening of the new Hoxton scheme in London this autumn, bed numbers in the portfolio will increase by 6%. As reported in the interim results, in November iQ acquired the Corsham Street scheme, comprising 673 beds in transport Zone 1 of London. The scheme is under construction and on schedule to open in time for the 2012/13 academic year.

SeQuel

During the period, one disposal was made from the SeQuel Fund of an industrial unit in Redditch. The price of £6.05m was at a 12% premium to the September valuation and reflected a yield of 8%.

Urban Regeneration

Wembley City

Construction of the Hilton Hotel and 660-bedroom student accommodation scheme at Wembley is on schedule to facilitate an opening next year, in line with our corporate target of achieving critical mass on the site through completion of the 2 million sq ft Western Core.

Our planning application to create a new 700-space car park adjacent to the London Designer Outlet ("LDO") has received a resolution to grant notice, subject to a Section 106 agreement.

As anticipated in the Half Year Results, Quintain has concluded the disposal at valuation of its interest for £6m in the joint venture with Summit to build a hotel to the north of the site.

At the entrance to the Stadium a new temporary five-a-side football complex is being built by Powerleague, the principal benefit of which will be to create additional animation on the site as well as making a modest contribution to profits.

Greenwich Peninsula

The first retail units opened at Greenwich Peninsula before Christmas, with 89% of available space by rental value now let or under agreement to lease. Six major brands have taken space on the scheme, including Wagamama and Costa Coffee.

The Company welcomed the approval of proposals for the Mayor of London's cable car. On completion this will transport 2,500 people per hour between Greenwich Peninsula and the Crossrail station outside the Excel Centre, further driving footfall to the site.

For further information, please contact:

Quintain Estates & Development plc

Rebecca Worthington / Cressida Curtis / Emma Villiers

Tel:       [phone]

Financial Dynamics

Stephanie Highett / Dido Laurimore / Laurence Jones

Tel:       [phone]

 

END

 

 

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