Quintain links up with Swiss firm at Wembley Park

UK property company Quintain has launched a 50:50 joint venture with Keystone Group Holding, a Swiss real estate and private equity family office, to deliver the next 306,000 sq ft (28,500 m2) phase at Wembley Park in London.

The joint venture will pay Quintain £22.7 mln (€28 mln) for the unserviced, one-hectare plot and a further £9.5 mln for future associated infrastructure.

Following the deal, Quintain will own 50% of the equity in the joint venture and receive cash proceeds of £13.6 mln, paid around completion of the transaction, with a further £2.5 mln to be paid on completion of the first phase, which is anticipated in 2016.

The company will build seven properties containing 475 homes on the plot, arranged around private gardens. Two of the buildings, containing 143 homes, will be constructed for Quintain and are expected to be completed in 2016. Quintain will pay the joint venture £37.1 mln for these two buildings.

These homes will be retained by Quintain and managed as high-quality private rental sector accommodation, building on the company’s existing lettings platform, which already manages 150 properties on behalf of individual landlords.

In addition, Quintain’s appointment as development and project manager will generate fee income of £3.3 mln over the next three years.

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.'