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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.
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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.
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