30th Sep 2008 07:00
30 September 2008
Quintain Estates & Development PLC
("Quintain" / "Company")
PRE-CLOSE STATEMENT
Quintain Estates & Development plc sets out below a trading update for the six months to 30 September, ahead of the interim results announcement scheduled for 27 November 2008.
Cash Preservation Programme
Further to the Interim Management Statement ("IMS") announced on 5 August 2008, Quintain is pleased to report that it has made good progress regarding its cash preservation programme.
Since 31 March 2008, the Company has repatriated £63.2m, which has been utilised to pay down debt. In addition to the £16.9m of asset sales announced in the IMS, a further £46.3m has been raised through the repayment by a third party of a loan facility and the sale of shares in Redhill Aerodrome Ventures Ltd. This puts the Company on course to achieve its target of repatriating up to £100m by the end of its financial year on 31 March 2009.
Lettings
The Company has also made good progress with its active asset management programme. Five acres of the Company's strategic Silvertown site have been let to Laing O'Rourke for a period of ten years, with a mutual break clause after five years. Located at the mouth of the River Lea, the site is ideal for transporting materials by water to and from the Olympic scheme in Stratford. This takes the total annual rent from the site, of which Quintain owns 66.6% in partnership with the London Development Agency, to £918,000.
A 15-year let of the last vacant unit at the Arrow Park development in Redditch was secured during September. Following an 18 month free period the rent will increase over two years to £736,000 per annum.
Mortgage completions at Wembley City
Quintain's exposure to the housing market remains limited and in this financial year comprises solely of Forum House (W01) at Wembley. A programme of progressive completions of contract regarding the 145 private apartments is underway, with £7.8m already received. Our Registered Social Landlord partners have taken ownership of the affordable housing apartments in the building and are managing the logistics of moving 141 families into Forum House throughout September and October.
Fund management
Quintain's student accommodation fund, iQ, has made excellent progress through the letting period leading up to the start of the academic year, achieving rents at an average of 5% above the 2007/08 academic year. 98% of the 2,437 beds within iQ are currently let.
Adrian Wyatt, Chief Executive of Quintain, commented:
"In our August IMS we committed to raise up to £100m, and the realisation of £63.2m through our specific cash repatriation activities to date demonstrates significant progress. The cash will be used primarily for debt reduction.
"Whilst market conditions remain challenging, the Board remains confident about the Company's prospects, particularly with regard to its major projects and fund management."
-Ends-
For further information please contact:
Quintain Estates & Development plc
Rebecca Worthington
Tel: +44 (0) 20 7495 8968
Financial Dynamics
Stephanie Highett / Dido Laurimore / Laurence Jones
Tel: +44 (0) 20 7831 3113
Forward looking statements
This document may contain certain forward looking statements. By their nature forward looking statements involve risk and uncertainty because they relate to future events and circumstances. Actual outcomes and results may differ materially from any outcomes of results expressed or implied by such forward looking statements.
Any forward looking statements made by or on behalf of Quintain speak only as at the date they are made and no representation or warranty is given in relation to them, including as to their completeness for accuracy or the basis on which they were prepared. Quintain does not undertake to update forward looking statements to reflect any changes in Quintain's expectations with regard thereto or any changes in events, conditions or circumstance on which any such statement is based.
Information contained in this document relating to the Company should not be relied upon as an indicator of future performance.
Related Shares:
Quadrise