14th Apr 2014 06:46
LONDON (Alliance News) - Quintain Estates & Developments PLC Monday said it has created a joint venture with Keystone Developers SA, a subsidiary of Swiss private equity business Keystone Group Holdings, to deliver the next phase of its residential development at Wembley Park.
Earlier this year, the London property investment and development specialists secured planning permission for 475 apartments near Wembley Park in North London.
The 50:50 joint venture will deliver the next 206,00 square feet phase of the scheme, which overall will consist of seven buildings arranged around an acre of private gardens close to Wembley Park underground station.
Quintain said the joint venture will pay it GBP22.7 million for the unserviced 2.5 acre plot and a further GBP9.6 million for future associated infrastructure.
Under the terms of the deal, Quintain will own 50% of the equity in the joint venture and receive cash proceeds of GBP13.6 million paid around completion of the transaction, with a further GBP2.5 million to be paid on completion of the first phase, anticipated in 2016.
Two of the seven buildings, covering 93,000 square feet and containing 143 homes, will be constructed for Quintain, for which the company will pay the joint venture GBP37.1 million.
Of this amount, GBP5.6 million will be paid in May with the balance paid from existing company resources on practical completion, expected in 2016.
Quintain said at the end of September the remaining development land at Wembley Park was valued at GBP312.0 million. Consent is held to develop 5,000 new homes on this land, alongside 1.9 million square feet of office, leisure, retail and student development.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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