Quintain have agreed to sell their share of Greenwich Peninsula Regeneration to their joint venture partner, Knight Dragon for £230m.
Quintain has entered into a conditional Sale and Purchase Agreement for the sale of its remaining interests in GPRL to Knight Dragon, an investment vehicle ultimately owned by Dr. Henry Cheng Kar-Shun, a Hong Kong-based businessman.
The total aggregate proceeds to be received on Completion by Quintain is £230 million and includes Knight Dragon’s existing obligations to pay £50 million on a deferred basis in three instalments over a six-year term pursuant to arrangements entered into on completion of the GPRL joint venture in July 2012 – Knight Dragon acquired its 60 per cent. interest in the shares of GPRL and GPRL Loan Stock for approximately £175 million of which £50 million was payable in instalments.
Quintain should realise a profit from the transaction which will result in an increase in net assets of approximately £34.6 million, or just over 6%.
In less than 18 months, Quintain has introduced a new partner to Greenwich Peninsula, enhanced the value of the site, and realised its share of the enhanced value. They say that, among other things, this will help accelerate delivery of their regeneration at Wembley Park, enabling them to “increase the quantum and ambition of the next phase of development at the 8.7 million sqft site”. It could also mean they will invest other London markets.
This also means the end of Quintains role as development manager for GPRL, and therefore their involvement in development of the Greenwich Peninsula, although they continues to own and control some retail interests and a 50 per cent joint venture interest in the 6 Mitre Passage office building.
Commenting on the Transaction, Maxwell James, Chief Executive of Quintain said:
“This is a compelling transaction for Quintain which, on attractive terms, delivers financial stability and certainty for our shareholders by crystallising future profits and cash flows at an early stage. The deal reflects the step change in value created at Greenwich Peninsula since the formation of our joint venture with Knight Dragon last year.
“We have now completed Quintain’s wider corporate repositioning, paving the way for a new phase of profitable growth for Quintain. We can now accelerate our major commercial and residential scheme at Wembley Park, building on this month’s opening of the London Designer Outlet and, with a strengthened financial position, Quintain’s highly experienced London team is well positioned to exploit new opportunities investing in selected income and value creating assets in the key London markets.”
Commenting on the Transaction, Sammy Lee, of Knight Dragon said: “Greenwich Peninsula represents a unique opportunity to deliver one of the largest regeneration schemes in Europe and Knight Dragon is fully committed to delivering this landmark development for London, creating thousands of new jobs, new homes and a community where people will want to live.
“Our joint venture with Quintain has achieved a great deal over the past year and a half. We are now looking forward to building on the momentum which has been created during the last 16 months.”