Quintain forms JV with Keystone Developers at Wembley Park

14th Apr 2014 09:53

Quintain Estates has formed a 50/50 joint venture (JV) at Wembley Park with Keystone Developers to create 475 homes in a bid to accelerate value creation, seed new income streams and support portfolio diversification.The JV will pay £22.7m to Quintain for the 2.5 acre plot and an additonal £9.5m for future associated infrastructure.It will recieve £13.6m in cash proceeds on completion of the transaction, with a further £2.5m due to be paid following completion of the first phase in 2016. Two of the seven buildings, covering 93,000 sq ft and containing 143 homes, will be constructed for Quintain, for which it will pay the JV £37.1m. The homes will be retained by Quintain and professionally managed as high quality private rental sector (PRS) accommodation, which it said will build on its existing lettings platform."Quintain expects a new, strong income stream to be generated for the group from this PRS business," the company said. Additionally, the transaction will enable it to invest capital more quickly in its growing London portfolio.Chief Executive of Quintain, Maxwell James, said: "This JV unlocks value for shareholders from our largest London asset, paving the way for the delivery of more new homes at Wembley into a supply-constrained London housing market. "Strategically, this deal enables us to establish a sustainable development programme for Wembley Park whilst recycling capital into our growing London investment portfolio, with the objective of creating superior returns for our shareholders.""We are pleased to be undertaking this development with Keystone, a partner with whom we have previously worked at Wembley Park with great success." Keystone Developers is a subsidiary of Keystone Group Holding, a Swiss real estate and private equity family office.NR