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Quintain Sells in London and Scunthorpe

LONDON-Quintain has raised £111 million ($205 million) from the sale of a central London office building and a northern shopping centre, and it has started reinvesting the proceeds with five purchases.

By Graham Parker | Updated on June 10, 2004

LONDON-Quintain has sold One Neathouse Place, a 95,000 sf office building in Victoria, central London and the 210,000-sf Parishes shopping centre in Scunthorpe for a combined £111 million ($205 million). And it has reinvested £27.5 million ($50 million) of the proceeds in five new purchases.In London, Quintain has completed on the sale of One Neathouse Place, London, SW1 for £67.8 million ($125 million) to Asticus, the UK arm of the German fund, IVG. The sale price reflects a yield of 6.68%. The 95,000 sq ft office building is principally let to BHP Billiton on a lease with eight years remaining. The total gross rental income £4.79 million ($8.9 million) per annum.And in Scunthorpe Quintain has completed the sale of The Parishes shopping centre, to Translloyd Developments for £43.15 million ($80 million). The sale price reflects a yield of 5.4%. The 210,535 sf town centre retail and leisure scheme was completed in October 2002 and has 16 tenants, including Hennes & Mauritz, Littlewoods, Woolworths and a seven screen multiplex cinema. The current passing rent on the property is £2.4 million ($4.4 million) per annum.In addition Quintain has spent £27.5 million ($50 million) on five new acquisitions, the biggest of which is Sapphire House, Stafford Park, Telford. The 90,150 sf office building is let to Tatung until 2017 at £12.50 ($23) per sf. The £12.9 million purchase price paid reflects a net initial yield of 8.25%.Quintain property director Nick Shattock said: “The decision to sell these assets reflects our strategy to reinvest the proceeds of strategic disposals back into the company’s activities.” He said he believed the new acquisitions offer better earnings and growth potential.

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