Quintain Estates and Development has published the Class 1 circular for the new joint venture with investment vehicle Knight Dragon relating to Greenwich Peninsula Regeneration.
A meeting to approve the transaction will take place on July 23rd, with completion of the transaction expected the following day.
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The investment vehicle is controlled by Dr Henry Cheng Kar-Shun, the Chairman of New World Development, a conglomerate listed in Hong Kong.
Knight Dragon will become the senior partner in Greenwich Peninsula Regeneration, taking a 60% stake, with Quintain owning the rest. GPRL has been granted development rights for some 14m square feet of mainly residential mixed-use development land across 150 acres at Greenwich Peninsula.
Quintain will receive cash of £78.8m (subject to a post-completion adjustment), of which £28.8m will be paid by Knight Dragon on completion and £50m will be received on deferred terms over a six-year period.
With infrastructure repayments, land receipts and fees over the next six years, based on the current business plan, Quintain anticipates receiving a further potential £80m of cash, which would bring total cash received in the six years to around £150m before development profits (equivalent to around 29p per share), although the actual amount of cash receipts will depend upon market conditions and the pace of development activity.
The share price rose 10.67% to 41.50p by 09:19.
NR/JH
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