Second JV at Wembley Park for Quintain & Keystone

RNS Number : 6121L

Quintain Estates & Development PLC

29 April 2015

 

29 April 2015                                                                                             

Quintain Estates & Development PLC

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

Quintain and Keystone Launch Second Residential Joint Venture at Wembley Park

·   Second 50:50 joint venture with Keystone at Wembley Park, for development of Alto

·   £19.0 million paid for the 1.5-acre plot and £8.0 million agreed separately for infrastructure

·   Transaction continues the acceleration of residential development at Wembley Park

·   Development will contribute 120 more homes to Quintain's PRS business

Quintain has established a second joint venture with Keystone Alto S.A. ("Keystone"), a subsidiary of Keystone Group Holding AG, a Swiss real estate and private equity family office, to deliver the next 260,000 sq ft residential development at Wembley Park.

Maxwell James, Chief Executive of Quintain, said:

"Our first residential joint venture with Keystone for the development of Emerald Gardens enabled us to accelerate our delivery of high quality homes at Wembley Park. We are delighted to now be joint venturing a second plot with Keystone, further accelerating residential delivery into a supply-constrained market, increasing our emerging PRS business by 80% and enabling Quintain to maximise return on equity."

Giorgio Laurenti, Chairman of Keystone Group, commented:

"After the first successful 475-unit residential project we are encouraged to expand our cooperation with Quintain through a further 362-unit residential development, reinforcing our commitment to the future of Wembley Park."

The joint venture will pay Quintain £19.0 million for the unserviced 1.5 acre plot ("Alto") and, separately, £8.0 million under an agreement for infrastructure to be delivered in the future: a total of £27.0 million. Net of the JV equity commitment, for its respective roles as a 50% partner and land vendor, Quintain will own 50% of the equity in the joint venture and receive cash proceeds of £14.3 million, paid around completion of the transaction, with a further £4.0 million to be paid on completion of the first phase, anticipated in 2017.

Two buildings comprising 362 homes will be built on the plot, either side of a private courtyard garden. 120 of the homes will be constructed for Quintain, for which the Company will pay the joint venture £36.8 million. Of this amount, £7.3 million will be paid now and £3.7 million in October, with the balance paid from existing Company resources on practical completion, expected in 2017. These homes will be retained by Quintain and professionally managed as high quality private rental sector ("PRS") accommodation to expand the Group's income.

In addition, Quintain's appointment as development and project manager for Alto will generate fee income of approximately £3.7 million over the next two years, further enhancing the Group's earnings.

Ends --

Quintain Cressida Curtis Tel: [phone] [e-mail]

Finsbury Jenny Davey / Charlotte Whitley Tel: [phone] [e-mail]

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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