Wembley valuation plunge puts Quintain close to covenant breach

Wembley-W07-Cinema Wembley City's value has fallen by 30%, according to Quintain's half-year results statement. Together with other asset falls, this has put the developer in danger of breaching its banking covenants.

In the half year the value of Wembley was written down by £131m to £532m. Overall, Quintain suffered a 28% fall in net asset value.

The valuation falls increased their gearing from 60% to 90% in the six months, reports Property Week. This compares with its banking covenant of 110%, which implies headroom in terms of £127m.

According to chairman John Plender, the company is looking at a range of debt-reduction activities, including disposals.

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