16th May 2014 10:47
LONDON (Alliance News) - London-focused property investors Quintain Estates & Development PLC Friday said it has sold the 50% stake it held in its iQ student accommodation joint venture to its partner Wellcome Trust in a deal worth GBP106.4 million in cash.
iQ owns a portfolio of 5,183 bedrooms across 13 properties located in nine UK cities, with a gross property value of GBP431.9 million at March 31.
Quintain said it will receive GBP300,000 of fee income from iQ over the next two years in return for certain transitional services.
"With the future of Quintain firmly fixed on London and iQ achieving strong results across the UK, it is the right time to unlock our substantial investment and recycle it into opportunities aligned to our growth strategy," Chief Executive Maxwell James said in a statement.
"Specifically, we are increasing the pace of residential delivery at Wembley Park, including an investment in private rented sector accommodation, and acquiring assets that offer the potential for income and capital growth in London," he added.
Quintain shares were quoted down 0.7% at 96.55 pence Friday morning.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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