Lone Star picks up Quintain for £700m

The US GP invested via its Lone Star Real Estate Fund IV. The fund has been targeting the UK property market in recent months, having acquired hotel operator Jurys Inn for £680m in January and UK brickmaker Hanson in the same month.

The Quintain deal saw Lone Star offer 131 pence per share, representing a 22.4% premium on the company's closing share price of 107 pence on 28 July.

The deal has been supported with £425m of debt provided by Wells Fargo.

Following the deal, Lone Star intends to further invest in Quintain to support its next phase of growth: accelerating the delivery of the Wembley Park renewal, and building more homes at a faster pace.

Company
Over the past decade, property developer Quintain has been developing Wembley Park, a London urban renewal scheme. The project has focused on transforming the exhibition centre and redundant industrial warehousing around Wembley Stadium (now known as the SEE Arena) into a new residential area.

In 2004, Quintain secured planning consent for 5,500 homes across the site. Currently, 835 homes are under construction, with 1,200 expected to be completed within the next four years. Quintain plans to retain and let 361 homes as part of its newly established Professional Market Rental business.

Beyond its operations in Wembley Park, Quintain also operates a property portfolio throughout London.

Quintain was founded in 1992 and listed on the London Stock Exchange in 1996.
For the 12 months ending March 2015, the company reported turnover of £57.7m, profit after tax of £37.9m and adjusted profit of £6.2m.

People
Angus Dodd is a managing director at Lone Star Europe. William Rucker is chairperson of Quintain and Maxwell James is CEO of the business.

Advisers
Company – JP Morgan Cazenove (M&A); Lazard (M&A).
Equity – Morgan Stanley (M&A).

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