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11 Sep 2009 07:00
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11 SeptemberΒ 2009Β
Quintain Estates & Development plc
("Quintain" /Β "Company" / "Group")
QUINTAIN REPATRIATES A FURTHER Β£31.3 MILLION OF CASH
Quintain announces the sale of units in The Quercus Healthcare Property Partnership ("Quercus"Β / the "Fund")Β for a total cash consideration ofΒ Β£31.3 million. The units have been sold to a number ofΒ UKΒ institutional pension funds through the anonymous matched bargain dealing facility provided by Aviva Investors, Quintain'sΒ partnerΒ in the Fund.
This transaction was undertaken as part of Quintain's strategy to repatriate cash and reduce gearing,Β therebyΒ enhancing the Company's financial flexibility.Β The proceeds of the disposal bring the total amount of cash repatriated since 1 April 2009 toΒ overΒ Β£42Β million, representingΒ 85% of theΒ Β£50 millionΒ 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 Β£140Β million.Β
Quercus is the largest fund within QuintainΒ Fund Management. As atΒ 30 JuneΒ 2009,Β itΒ had Β£759.9Β millionΒ in funds under management and ownedΒ 264Β assets, comprising nursing and residential care homes for the elderly, specialist care homes for those with long term disabilities, private hospitals, and care villages.Β TheΒ units were sold atΒ a 12% discount to the Fund's reported NAVΒ at JulyΒ and a discount to Quintain's March valuation of Β£10.8m,Β representingΒ aΒ loss against book cost of Β£1.8 million.Β In the last twelve months,Β theΒ unitsΒ delivered Β£2.5Β millionΒ of income to the Group.Β
As a result of this disposal,Β Quintain's total holding in Quercus is reduced from 25.4% to 16% and the number of investors inΒ the FundΒ has increasedΒ to 50.
Rebecca Worthington, FinanceΒ Director of Quintain, commented:Β
"ThisΒ disposalΒ representsΒ another important milestone in our cash repatriation programme,Β taking the total raised to 85% of the Β£50 million we intend to repatriate by 31 March 2010Β and thereby further enhancingΒ Quintain's financial flexibility and control over interest costs."
For further information,Β please contact:
Quintain Estates & Development plc
Rebecca WorthingtonΒ /Β Tonianne Dwyer / CressidaΒ Curtis
Tel: +44 (0) 20 7495 8968
Financial Dynamics
Stephanie Highett /Β Dido Laurimore / Laurence JonesΒ
Tel: +44 (0) 20 7831 3113
Notes to Editors
QuintainΒ Fund Management ("QFM")Β 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 atΒ 31 March 2009, QFM's funds under management were Β£980 million.
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