12th Mar 2008 18:06
Quintain Estates & Development PLC12 March 2008 12 March 2008 Quintain Estates and Development PLC ("Quintain" / "Company" / "Group") QUINTAIN FORWARD FUNDS MAJOR STUDENT ACCOMMODATION DEVELOPMENT SCHEME IN LONDON Quintain Estates and Development announces that, through its wholly ownedsubsidiary Corsham Street Student 1 Limited, it has entered into a forwardcommitment with Rocket East Road Developments Ltd for the development of asignificant student accommodation scheme at East Road, London EC1, conditionalupon completion of certain planning and funding obligations. The forward commitment has been structured as the deferred purchase of a longleasehold interest from the current owners East Road Developments Limited underwhich Quintain will: • Make an initial payment of £5m when the deal goes unconditional;this is currently anticipated to occur in late 2008. • Make a payment for the long leasehold interest in the site 15 monthsafter the deal goes unconditional of between £16m and £49m depending on thefinal size of the scheme. • Make a payment under a development agreement with Rocket East RoadDevelopments Limited of between £27m and £67m on practical completion of thebuilding expected in 2011. This payment is again variable, depending upon thefinal size of the scheme. • The development cost risk will remain with Rocket. The acquisition will be funded from Quintain's group facilities. Tonianne Dwyer, an Executive Director of Quintain and the head of Quintain FundManagement, commented: "This scheme represents a significant opportunity to secure a major studentaccommodation scheme in London - one of the UK's most under-supplied markets forhigh quality bespoke student accommodation. Backed by the strong marketfundamentals, we are confident that this asset will offer considerable capitaland income growth potential." For further information please contact: Quintain Estates and Development plc Financial DynamicsTonianne Dwyer / Rebecca Worthington Stephanie Highett / Dido LaurimoreTel: +44 (0) 20 7495 8968 Tel: +44 (0) 20 7831 3113 Tom Appleton - Rocket East Road Developments LtdTel +44 (0) 207 318 9934 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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