The Board of Quintain announces that the Company has entered into a conditional Sale and Purchase Agreement for the sale of its remaining interests in Greenwich Peninsula Regeneration Limited (‘GPRL’) to the Company's current joint venture partner, Knight Dragon Limited (‘Knight Dragon’) (an investment vehicle ultimately owned by Dr. Henry Cheng Kar-Shun, a Hong Kong-based businessman).
The total aggregate proceeds to be received on completion by Quintain is £230 million (approx. €272 million) and includes the acceleration of Knight Dragon’s existing obligations to pay the Company £50 million on a deferred basis in three installments over a six-year term pursuant to arrangements entered into on completion of the GPRL joint venture in July 2012.
The profit that Quintain will realize from the Transaction will result in an increase in net assets of approximately £34.6 million, or 7 pence (6.4%) per Ordinary Share.
The Board of Quintain believes the proposed Transaction presents a compelling opportunity to maximize value for Shareholders, delivering increased certainty by crystallizing future profits and cash flows from the Company’s 40% stake in GPRL at an early stage.
In less than 18 months, Quintain has introduced a new partner to Greenwich Peninsula, with which it has materially enhanced the value of the site, and is now realizing its share of the value of these endeavors. In doing so, Quintain has unlocked the development of this important site for London and the inherent value within it for Shareholders.
The assets being disposed represent approximately 20% of Quintain’s gross asset value and, as well as generating an increase in net assets of £34.6 million (6.4%), the Transaction will see the Group’s net debt fall by some 52% from £443.6 million to £217.6 million, on a pro-forma basis at March 31, 2013.