City Park Gate developers ‘meeting milestones’
PROPERTY company Quintain Estates and Development has added £3.5m to its annualised income since April, it reports today.
In a first quarter interim management statement, the firm says it has achieved “good operational progress” and has added £3.5m through new lettings, acquisitions and sponsorship deals completed since April 1.
Quintain is behind the ‘City Park Gate’ development next to Moor Street Station, in central Birmingham, where it plans to build over 450,000 sq ft of offices, a 200-room hotel, 250 residential apartments, 15,000 sq ft of retail and a new public square.
Hotel La Tour was granted planning consent earlier this month for the development of the new hotel on City Park Gate after the sale of the plot was agreed last year.
Quintain said development of the wider City Park Gate site is on hold pending confirmation of the Government’s proposals to site a high speed railway station on part of the land.
It said its medium-term strategy was therefore to continue driving income from the site and this was now exceeding £450,000 per annum.
At June 30, 2010, Quintain’s net borrowings were £395.3m. The firm said this debt was 100% hedged and its average cost over the three months to the end of June 2010 was 5%.
Quintain’s chief executive Adrian Wyatt said: “In our June results announcement we set out a new three year business plan, including key operational milestones for the current financial year.
“Two months on, we are pleased to have delivered the first two of these nine milestones with the sale of Pier Walk at Greenwich and a 20% expansion of our iQ portfolio.
“While the recovery in the property sector has yet to become widespread or gather momentum, our focus on the fulfilment of our strategy is unequivocal and we anticipate the delivery of further milestones before the end of the calendar year.”
The company’s other projects include urban regeneration in Greenwich and Wembley and plans to deliver 635 new beds for student accommodation in its iQ portfolio.
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