Quintain has sold its 50% interest in Mitre Passage office building at Greenwich Peninsula, SE10, for £17.1m to Tristan Capital Partners.
The disposal of its half-share in the Greenwich Peninsula NO204B Block B Unit Trust – a joint venture with Lend Lease – and the 100% owned shop in the same building is “in line with its strategy to streamline it non-core holdings”.
Quintain added that the carrying value of these investments on its balance sheet, as at 30 September 2013, was £14.2m, and at the year to March 2013 the assets generated a loss to the business of £4.1m.
The net proceeds from the disposal will be used initially to reduce the firm’s net debt – expected to be £220m at the year in end in March – but will be available to be redrawn “as required for attractive investment opportunities in London”.
Alongside the disposal, Quintain has released a trading update for the period from 1 October to 11 February, during which it disposed of six assets, realising combined gross proceeds of £31.6m.
These include the company’s residual retail interests at Greenwich Peninsula for £5.7m, a Sheffield office for £2.9m and a Jersey office for £3.6m.
Last week it announced that it had exchanged contracts to acquire a 21-year leasehold interest in Kingsbourne House , a multi-let office building at 229-232 High Holborn, and part of the adjacent 226 High Holborn for £13.7m.
The 37,000 sq ft asset above and adjacent to Holborn Underground station generates a strong income stream for the group in the medium term as well as asset management and development opportunities.
Looking ahead, Quintain said it was poised to begin delivery of its 475-home Wembley residential scheme after an 18-month period repositioning the business.
The London property investment and development specialist said following the go-ahead from Brent council in December it would begin marketing the Wembley scheme next month.
Construction of the scheme, which comprises seven buildings arranged around an acre of private gardens, will begin “shortly thereafter”.
It added that the homes “are at a price point that is affordable for Londoners looking for a new home to buy or rent”.
At the nearby London Designer Outlet , Quintain said that nine new brands have opened stores in the period from 1 October to 11 February, and the centre “traded well over Christmas, with more than half a million people visiting in the 6 weeks to 5 January 2014”.
Leasing interest in the scheme remains strong and it is now 87% let by base rent.
Quintain’s student accommodation joint venture, iQ, is 99.9% let for the current academic year and performing ahead of expectations for 2014-15.
Seven months before the start of the new academic year, pre-lets of the 5,183-bedroom portfolio are ahead of the same point in 2013 at 44% (2013: 40%) and at increased average rents, up 3.9% year on year.
Max James, chief executive of Quintain, said: “Following the successful creation of a leisure and retail heart for Wembley Park through London Designer Outlet, momentum is building at the development and we are now poised to begin delivery of one of the most significant new residential districts this quadrant of London has seen for several decades.
“We completed our corporate repositioning last year with the Greenwich Peninsula and Sequel transactions, detailed in our interim results, and are pleased to announce today an additional £31.6m of disposals.
“These latest transactions bring the total realised from all sales and capital recycling over the past 18 months to £500m.”
bridget.oconnell@estatesgazette.com
