Quadrise Regulatory News (QED)

11 Sep 2009 07:00



11 September 2009 

Quintain Estates & Development plc

("Quintain" / "Company" / "Group")

QUINTAIN REPATRIATES A FURTHER £31.3 MILLION OF CASH

Quintain announces the sale of units in The Quercus Healthcare Property Partnership ("Quercus" / the "Fund") for a total cash consideration of £31.3 million. The units have been sold to a number of UK institutional pension funds through the anonymous matched bargain dealing facility provided by Aviva Investors, Quintain's partner in the Fund.

This transaction was undertaken as part of Quintain's strategy to repatriate cash and reduce gearing, thereby enhancing the Company's financial flexibility. The proceeds of the disposal bring the total amount of cash repatriated since 1 April 2009 to over £42 million, representing 85% of the £50 million Quintain had targeted to raise in the year to 31 March 2010. The total cash repatriated by the Group since 1 April 2008 is now £140 million. 

Quercus is the largest fund within Quintain Fund Management. As at 30 June 2009, it had £759.9 million in funds under management and owned 264 assets, comprising nursing and residential care homes for the elderly, specialist care homes for those with long term disabilities, private hospitals, and care villages. The units were sold at a 12% discount to the Fund's reported NAV at July and a discount to Quintain's March valuation of £10.8m, representing a loss against book cost of £1.8 million. In the last twelve months, the units delivered £2.5 million of income to the Group. 

As a result of this disposal, Quintain's total holding in Quercus is reduced from 25.4% to 16% and the number of investors in the Fund has increased to 50.

Rebecca Worthington, Finance Director of Quintain, commented: 

"This disposal represents another important milestone in our cash repatriation programme, taking the total raised to 85% of the £50 million we intend to repatriate by 31 March 2010 and thereby further enhancing Quintain's financial flexibility and control over interest costs."

For further information, please contact:

Quintain Estates & Development plc

Rebecca Worthington / Tonianne Dwyer / Cressida Curtis

Tel: +44 (0) 20 7495 8968

Financial Dynamics

Stephanie Highett / Dido Laurimore / Laurence Jones 

Tel: +44 (0) 20 7831 3113

Notes to Editors

Quintain Fund Management ("QFM") uses specialist property expertise to create value in its funds operating in three sectors with high barriers to entry: healthcare (Quercus), student accommodation (iQ) and science parks (Quantum). Each fund is underpinned by strong demographics such as an ageing population and increasing numbers of people entering higher education. The Funds interact with Quintain's other businesses, taking space on our major schemes, using the asset management skills within the Investment Portfolio and generating income that is used across the Group.

As at 31 March 2009, QFM's funds under management were £980 million.