Quintain sells hotel share

Quintain has announced the sale of a 50% interest in the 361 bedroom, four star Hilton London Wembley Hotel to OCM Wembley Holdings, a company owned by funds managed by Oaktree Capital Management.

Quintain’s will take £30.1 million from the transaction, in line with last year’s valuation. Oaktree will receive a preferred return, with Quintain receiving an increasing share of the income stream once the preferred return has been paid.

The new Hotel, which opened in July, sits at the heart of Quintain’s wider Wembley regeneration scheme.

In addition to this transaction, Quintain has disposed of a portfolio of 34 residential units at Wembley for £7.5 million on deferred terms.

David Snelgrove from Oaktree Capital Management commented: “Wembley is an iconic destination with a storied history and should continue to benefit from significant investment from Quintain and others. We are excited to be partnering with Quintain and to be part of Wembley’s on-going regeneration and status as an attractive destination for conferences, events and leisure activities.”

Max James, Chief Executive of Quintain, said: “We are delighted to introduce Oaktree as a further stakeholder in the regeneration of Wembley. This transaction clearly reflects the scheme’s significant investment potential.

“The sale of a 50% interest forms an important part of our strategy to reduce net debt to below £400m whilst enabling Quintain to participate further in the potential upside from the Hilton’s maturing business profile. The opening of the London Designer Outlet later this year, a revitalised Wembley Arena and Wembley’s emerging position as a new, dynamic retail and leisure destination within London will all contribute to the success of the new hotel.”

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