Lone Star confirms Quintain mega-loan
Quintain has confirmed it has secured a new £800m corporate development facility, as revealed by Estates Gazette yesterday.
The five-year deal is one of the biggest UK debt deals of the year and one of the largest development financings of the decade.
Wells Fargo and AIG have provided a £560m senior loan, with AIG having provided slightly over half. Canada Canada Pension Plan Investment Board has issued a £240m junior loan.
[caption id="attachment_830014" align="alignright" width="200"] Plans for Quintain’s Wembley Park project[/caption]
Quintain has confirmed it has secured a new £800m corporate development facility, as revealed by Estates Gazette yesterday.
The five-year deal is one of the biggest UK debt deals of the year and one of the largest development financings of the decade.
Wells Fargo and AIG have provided a £560m senior loan, with AIG having provided slightly over half. Canada Canada Pension Plan Investment Board has issued a £240m junior loan.
The debt is held across the whole of the Quintain portfolio but is predominantly for the delivery of more than 4,800 homes at its flagship Wembley Park project. More than a third of the homes will be affordable and Quintain will operate many under its PRS brand Tipi.
Quintain was bought by Lone Star in a £745m take-private deal last October using a £425m bridge loan from Wells, which has now been refinanced. Lone Star plans to gradually sell off Quintain’s smaller interests other than Wembley and CPPIB’s junior facility includes a 36-month availability period that will allow for capital to be recycled away from non-core assets and back into the Wembley project.
Simon Carter, finance director at Quintain, said: “We have secured the support of three major global financial institutions for a corporate lending facility that provides the flexibility we need to deliver our plans to build homes for London.”
Max Sinclair, head of UK commercial real estate at Wells Fargo, said: “Arranging this new, longer-term facility alongside AIG assists Quintain in executing its strategy for Wembley. Supporting the creation of a community with PRS at its heart plays to the strengths of Wells Fargo’s multi-family experience in the US.”
Geoff Souter, managing director, head of private real estate debt at CPPIB, added: “This investment fits well with our strategy of providing customised, large-scale funding solutions to borrowers with high-quality real estate assets.”
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