Quintain has established a second joint venture with swiss real estate group Keystone to deliver a 260,000 sq ft residential development at Wembley Park.
Maxwell James, Chief Executive of Quintain, said: “Our first residential joint venture with Keystone for the development of Emerald Gardens enabled us to accelerate our delivery of high quality homes at Wembley Park. We are delighted to now be joint venturing a second plot with Keystone, further accelerating residential delivery into a supply-constrained market, increasing our emerging PRS business by 80% and enabling Quintain to maximise return on equity.”
Giorgio Laurenti, Chairman of Keystone Group, commented: “After the first successful 475-unit residential project we are encouraged to expand our cooperation with Quintain through a further 362-unit residential development, reinforcing our commitment to the
future of Wembley Park.”
The joint venture will pay Quintain £19.0 million for the unserviced 1.5 acre plot and, separately, £8.0 million under an agreement for infrastructure to be delivered in the future: a total of £27.0 million.
Net of the JV equity commitment, for its respective roles as a 50% partner and land
vendor, Quintain will own 50% of the equity in the joint venture and receive £14.3 million in cash on completion of the transaction, with a further £4.0 million to be paid on completion of the first phase, which is expected to be in 2017.
Two buildings providing 362 homes will be built on the plot, either side of a private courtyard garden. 120 of the homes will be built for Quintain’s PRS company, for which Quintain will pay the joint venture £36.8 million – £7.3 million now and £3.7 million in October, with the balance paid on practical completion, expected in 2017. These
homes will be retained by Quintain and managed as private rental sector accommodation to expand the Group’s income.
In addition, Quintain’s appointment as development and project manager for Alto will generate fee income of approximately £3.7 million over the next two years.