Quintain Estates and Development : announces £800 million corporate development facility for Wembley Park

Quintain announces £800 million corporate development facility for Wembley Park

15 November 2016

Quintain announces today that it has agreed a new £800 million corporate development facility following its acquisition by Lone Star Real Estate Fund IV in September 2015.

Wells Fargo, AIG and Canada Pension Plan Investment Board ("CPPIB"), three of the biggest global, institutional lenders, have agreed to provide a five year corporate development facility to Quintain to support the transformation and further development of Wembley Park. The loan also refinances the existing £425m facility provided by Wells Fargo to support the acquisition of Quintain by Lone Star. The revolving senior loan, led by Wells Fargo as Agent, and AIG and Wells Fargo as Co-Arrangers, combined with a 36-month availability period under the junior facility, provided by CPPIB, is innovatively structured to offer operational flexibility for Quintain to recycle capital efficiently from non-core assets into the Wembley Park Masterplan.

The new Masterplan will deliver more than 4,800 new homes for London, more than a third of which will be affordable, with many available to rent through Quintain's PRS business, Tipi.

Simon Carter, Finance Director of Quintain said:

"We are delighted to have secured the support of three major global financial institutions for a new corporate lending facility which provides the flexibility we need to deliver our plans to build new homes for London."

Max Sinclair, Head of UK Commercial Real Estate, Wells Fargo said:

"We were delighted to support our long-standing client Lone Star in their acquisition of Quintain last year. Arranging this new, longer term facility alongside AIG marks the next phase in our continued support and assists Quintain in executing their vision and strategy for Wembley. Supporting the creation of a living community with PRS at its heart plays to the strengths of Wells Fargo's multi-family experience in the U.S."

Geoff Souter, Managing Director, Head of Private Real Estate Debt, CPPIB said:

"We are pleased to support Quintain and Lone Star in the work they are doing to redevelop the area surrounding Wembley Stadium into one of London's most exciting destinations to live, shop and work. This investment fits well with our strategy of providing customised, large-scale funding solutions to borrowers with high quality underlying real estate assets."

Tom Fewings, Managing Director, Head of Commercial Real Estate Finance, AIG said:

"This is a fantastic project with an excellent sponsor in Lone Star & Quintain and follows on from other large scale London re-development projects that AIG has recently financed."

The refinancing follows approval in May from Brent Council for a new Masterplan for Wembley Park, which aims to transform Wembley Park from a world class events destination into a thriving London neighbourhood, with an exciting combination of new homes, iconic venues, great shops, public spaces and workspaces.

Quintain's plans will deliver almost half of Brent Council's target for new homes delivery as well as 1 million sq ft of new, high quality offices and workspaces which will create the opportunity for more than 7,000 new jobs.

The development also features a significant upgrade to the famous Olympic Way (known as "Wembley Way" to football fans) and a new seven‐acre park, equivalent in size to four Wembley football pitches.

Since first acquiring the site in 2002, Quintain has already invested more than £800 million at Wembley Park to deliver new homes, shops, hotels, public realm and community infrastructure. It now plans to invest a similar amount again over the next five years to accelerate delivery of the project.

So far 1,000 new homes have already been delivered and a further 600 are under construction, including a significant proportion of affordable apartments.

The London Designer Outlet ("LDO") opened in 2013 and is the first outlet centre within the M25. It has over 70 high street stores, restaurants, bars, coffee shops and a 9‐screen cinema. The centre achieved like for like sales growth of +14% year to date.

The 361‐bed four‐star Hilton hotel, also developed by Quintain, offers a spa, gym, a roof top bar and restaurant.

In March 2016, Quintain launched Tipi, the lifestyle-focussed rental operator which aims to redefine the experience of renting in London. Quintain has launched, and fully let, 141 homes for rent under the Tipi brand with a further 415 apartments coming to the market in the next two years.

Wembley Park benefits from fantastic transport connections to central London via the Jubilee and Metropolitan tube lines - it is just nine minutes from Marylebone and 12 minutes from Baker Street.

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About Quintain:

Quintain is the London developer behind the transformation of Wembley Park in north west London.

Established in 1992, Quintain acquired its interest in Wembley Park in 2002. To date, the 85-acre development, adjacent to the SSE Arena, Wembley and London Designer Outlet, has already seen £800 million

invested and now welcomes over 10 million visitors a year and has 1,800 residents. The site currently comprises the world famous SSE Arena, Wembley which Quintain refurbished and reopened in 2006; London Designer Outlet, which includes 70 high street outlet stores, restaurants, bars, coffee shops and a 9‐screen Cineworld cinema; a 361 room 4 star Hilton Hotel and over 1,000 new homes.

In 2016 Quintain launched Tipi, the lifestyle-focused rental operator which offers an all-inclusive rental package to those seeking an easier way to rent in the capital.

Between now and 2020 it is expected that a further £1 billion will be invested at Wembley Park as Quintain develops around 1 million square feet of office space and a further 6,000 homes, across a broad

range of tenures, which will make a significant contribution both to Brent and London's housing need. During 2017 alone a further 3,000 homes will be under construction.

Wembley Park already benefits from wide boulevards and attractive public spaces - a new seven acre park will bring the total area of landscape and public realm to around 42 acres. Wembley Park has excellent transport connections to central London via the Jubilee and Metropolitan tube lines. It is just nine minutes from Marylebone and 12 minutes from Baker Street.

www.quintain.co.uk www.tipi.london www.wembleypark.com www.londondesigneroutlet.com

Enquiries: Quintain Finsbury

Harriet Pask Jenny Davey

Tel: [phone] James Thompson

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