Business
Disposal of SeQuel
Disposal of SeQuel.
About this update from Quadrise Plc
[{"type":"text","content":"\n \nRNS Number : 5729P Quintain Estates & Development PLC 02 October 2013 \n \n\n \n \n2 October 2013\n \n \nQuintain Estates & Development PLC\n(\"Quintain\" / \"Company\" / \"Group\")\n \n \nQuintain Agrees the Disposal of SeQuel Regional Investment Property Business\nProceeds will be applied to reduce debt\n \n \nFurther to the statement made on 2 September 2013, Quintain Estates and Development PLC today announces that contracts have been conditionally exchanged with Palace Capital plc, an AIM-quoted company, regarding the sale of Quintain Signal Member A Ltd (\"Signal\"), the owner of the SeQuel regional property portfolio, along with an additional property, Gelderd Point in Leeds (together, the \"Proposed Disposal\").\n \nThe Proposed Disposal is conditional upon approval by Palace Capital's shareholders at a general meeting to be held on 18 October 2013 and the completion of a £23.5 million placing by Palace Capital to part-fund the acquisition. \n \nThe agreed purchase price for Quintain's interest1 in the business is £39.05 million with normal adjustments for working capital. At 31 March 2013, the comparable gross asset value for Quintain was £42.42 million. For the year ended 31 March 2013, the business being disposed by Quintain made a loss before tax of £11.8 million.\n \nAs part of this transaction, £550,000 of the net proceeds will be used to subscribe for shares in Palace Capital (approximately 2.5% of the enlarged issued share capital of Palace Capital). The balance of the net proceeds will be used to reduce the Company's debt. \n \nThe Palace shares subscribed for by Quintain will be subject to a lock-in for 12 months after completion and subject to orderly marketing arrangements for a further 12 months after that period.\n \nThis transaction does not include Stadium Retail Park, which was valued at £13.8 million at 31 March 2013, and is owned by Signal Property Investments Two LLP.\n \nRichard Stearn, Finance Director of Quintain, said:\n\"We are delighted to have agreed this transaction which disposes of the majority of our residual regional investment property business. The sale is in line with our strategy to exit non-core assets outside London, reduce group debt and intensify the focus on our London develo...