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Buyer Interest Could Prompt £3B Quintain Sale

Quintain's Ferrum building at Wembley Park.

Private equity firm Lone Star has appointed advisers to weigh whether to sell its Wembley Park build-to-rent scheme for as much as £3B following interest from potential buyers of the development. 

JP Morgan has been appointed to advise on the possibility of what would amount to a sale of Wembley Park developer and manager Quintain, React News reported. Wembley Park, with planning consent for 8,000 homes, is the largest build-to-rent scheme in the UK.

Bisnow is hosting a webinar on BTR investment and development at 1.30pm on Tuesday 15 September. To watch, sign up here.

Earlier this year, Lone Star appointed Savills to find an investor to buy the 1,500 BTR units that are already operational at Wembley Park for £1B and commit to funding the construction and development of a further 4,500 units. But that process has unearthed interest in the acquisition of the entire project, which also includes 2,000 affordable rented homes, and is valued at £3B. The deal would not include the Irish assets Quintain manages on Lone Star’s behalf.

Lone Star first tried to sell Quintain in 2018 and came close to a £2.3B deal with the backers of Get Living. At that point only 260 flats were operational, and the two parties were about £50M apart in price, meaning the deal fell away. 

That consortium would be a likely bidder for Wembley Park again today. Get Living is backed by Delancey, Qatari Diar, APG, Oxford Properties, Alecta, Local Pensions Partnership and Allianz, with the latter putting £410M into the platform in August. 

Other bids for Quintain in 2018 included LRC, Greystar and Grand City Properties, React News said. 

Lone Star took Quintain private in a £1B deal in 2015 and pivoted the strategy at Wembley away from homes built for sale to BTR.

Bisnow is hosting a webinar on BTR investment and development at 1.30pm on Tuesday 15 September. To watch, sign up here.