Quintain Secures £234M Bank Of America Loan On Wembley Park Assets

Developer Quintain has refinanced London Designer Outlet and build-to-rent development Ferrum, both located in Wembley Park, with a £234M loan from Bank of America.

The four-block Ferrum development comprises 627 BTR homes, completed in phases in 2019 and 2020, and is managed by Quintain Living.

Meanwhile, the 265K SF retail outlet centre LDO is positioned close to the National Stadium and has a footfall of 16.4 million people per year, according to Quintain, with more than £103M of sales in 2024, up 5% on 2023.

Managed by Multi-Realm, LDO has 70 outlet stores, restaurants and coffee shops, including brands such as Nike, Adidas, Tommy Hilfiger, French Connection, Rituals, Nando’s, Las Iguanas and Wagamama.

Quintain said that over the past 12 months it had secured 11 new lettings at LDO and relocations totalling 15,800 SF, including the arrival of French Connection and Rituals, plus the first outlet stores for Miniso and Abaci.

Since breaking ground at Wembley Park 20 years ago, Quintain has completed more than 5,000 homes and said it is working toward creating the largest BTR neighbourhood in the UK, having invested £2.9B to date. 

In accounts for 2023, Quintain reported that its operating profit had almost doubled from £21M to £39M, although the overall value of its portfolio reduced from £3.05B at the end of 2022 to £2.15B at the end of 2023. 

The company added units with a value of £152M but divested buildings valued at £178M. A further £278M were categorised as held for sale in the accounts and not counted as part of the portfolio. The value of its portfolio was also written down by a further £589M, which Quintain attributed to market sentiment and rising yields for investment assets.

In August, it received a preferred equity injection of £755M to complete the remaining 2,500 homes in its development programme, of which £418M came from funds managed by Ares Management and £337M from parent company Lone Star.

“Whilst this is not the first facility we have secured from Bank of America, it is certainly our largest and represents an ongoing, positive relationship. Ferrum and the LDO are extremely important assets at Wembley Park,” Quintain Chief Financial Officer Philip Slavin said in a statement.

Quintain was represented by DAC Beachcroft and AOS Finance. Mayer Brown acted for Bank of America.