The JV will fund the building of the 306,000 sq ft phase of residential development at Wembley Park, paying £22.7 million for the plot and £9.5 million for the associated infrastructure.
Quintain say the transaction supports the creation at Wembley Park of more homes, more quickly, and creates a new Quintain-owned private rental sector business.
Seven buildings containing 475 homes will be built on the plot, arranged around an acre of private gardens. Two of the buildings, covering 93,000 sq ft and containing 143 homes, will be built for Quintain, for which they will pay the Joint Venture £37.1 million.
These homes will be retained by Quintain and managed as private rental sector accommodation. This builds on the Company’s existing lettings platform, established in 2008, which already manages 150 properties.
In addition, Quintain’s appointment as development and project manager for NW01 will generate fee income of approximately £3.3 million over the next three years.
Quintain say that as well as accelerating the delivery of homes at Wembley Park in a sustainable manner, this transaction will enable them to invest capital more quickly.
Quintain has a consent to develop 5,000 new homes on their remaining Wembley land, alongside 1.9 million sq ft of office, leisure, retail and student development.
Maxwell James, Chief Executive of Quintain, said: “This Joint Venture unlocks value for shareholders from our largest London asset, paving the way for the delivery of more new homes at Wembley into a supply-constrained London housing market. Strategically, this deal enables us to establish a sustainable development programme for Wembley Park whilst recycling capital into our growing London investment portfolio, with the objective of creating superior returns for our shareholders.
“We are pleased to be undertaking this development with Keystone, a partner with whom we have previously worked at Wembley Park with great success.”
Giorgio Laurenti, Chairman of Keystone Group, commented: “We are delighted to join forces with Quintain once again at Wembley Park. We first cemented our partnership through the successful acquisition of the Wembley student accommodation building in 2011 and are pleased to continue investing in Wembley as the area regenerates into an increasingly vibrant location.”
Keystone is a subsidiary of Keystone Group Holding AG, a Swiss real estate and private equity family office.