iQ Fund agrees further ?70m financing with M&G

RNS Number : 8950D

Quintain Estates & Development PLC

23 May 2012

 



23 May 2012

Quintain Estates & Development plc

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

iQ Fund agrees further £70 million financing with M&G 

Quintain, the London regeneration specialist and fund manager is pleased to announce that it has successfully arranged a £70 million financing with M&G Investments for the new 673 bedroom iQ Shoreditch scheme which will open this summer, bringing the iQ portfolio to 5,183 rooms with a rent roll of £33 million.

These new facilities supplement the 5 year, £115 million M&G senior debt facility secured in March 2012 with which the new facility will be cross collateralised. 

On draw down in the summer the iQ Fund will  have total debt of £227.75m, including the £42.75m Deutsche Postbank also secured in March, and a loan to value ratio of 57% based on the December 2011 valuations which we expect to be broadly similar to March 2012.

iQ continues to experience strong demand for its units, with a fully-let portfolio at present and forward lettings for the 2012/13 academic year, around the level achieved at the same point last year.

The iQ Fund, one of the UK's largest student accommodation providers, is a 50-50 joint venture between Quintain and the Wellcome Trust.

Rebecca Worthington, Quintain's Finance Director, commented: "We are pleased to have successfully concluded a second deal with M&G on attractive terms in a very short timescale. This agreement concludes the financing of the current iQ portfolio, providing a very stable financial base from which to pursue further growth".

For further information, please contact:

Quintain Estates & Development plc

Rebecca Worthington / Jan Vigneswaran

Tel: [phone]

RLM Finsbury

Jenny Davey / Ed Lane Fox

Tel: [phone]

Notes to editors:

Quintain

Quintain is a listed UK property company operating through two businesses: London centric Urban Regeneration and Fund Management.

Urban Regeneration:

Quintain is responsible for two of the largest regeneration schemes in London at Wembley and the Greenwich Peninsula.

Wembley:

Quintain is transforming 85 acres of former exhibitions lands around Wembley Stadium to create a retail and leisure destination which will deliver people, businesses and economic growth to the heart of Wembley.

Greenwich:

On a 190 acre site surrounding The O2, Quintain and its partner Lend Lease (Europe), are creating a new London community along 1.6 miles of Thames river frontage.

Fund Management:

Quintain's Fund Management business has £2.2 billion of assets under management, following the acquisition last month of the specialist central London strategic property adviser, Grafton Advisors (2006) LLP ("Grafton"). Quintain's specialist Fund Management activities are focused on Central London, healthcare, higher education and science parks. The Company seeks to generate excellent returns for investors thereby creating profits from fee and asset management income.

Further information about the company is available on the Quintain website at www.quintain.co.uk

 

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