Quintain has secured a £755m preferred equity commitment led by funds from Ares Management Corporation.
Quintain owner Lone Star will also contribute £337m to the preferred equity instrument, which will allow the developer to carry out the final tranches of development at Wembley Park.
James Saunders, CEO of Quintain, said: “Quintain is delighted to have Ares’ backing as a new partner, whilst maintaining our longstanding partnership with Lone Star, to continue to develop the world-class Wembley Park estate which already is home to the largest multifamily/build-to-rent community in the UK.”
James Riddell, co-head of European real estate at Lone Star, added: “This is a significant next step in the evolution of Quintain’s development of Wembley Park under Lone Star’s ownership. Wembley Park is one of the largest build-to-rent schemes in the UK and a great example of ambitious place-making. In Ares, we have found a like-minded partner, and together we look forward to taking this iconic asset to its next exciting phase.”
Stefano Questa, partner and European co-head of Ares Alternative Credit, who will be joining the Quintain board of directors as part of the transaction, said: “Lone Star and Quintain have built Wembley Park into one of London’s leading neighbourhoods, delivering a high-quality and sustainable real estate for thousands of residents and millions of visitors. We are excited to partner with their outstanding teams, and to provide significant new capital for Quintain to continue its journey and cement its position as a leader in London’s critically undersupplied residential rental market.”
Joel Holsinger, partner and co-head of Ares Alternative Credit, added: “Our team is an established leader in providing bespoke and creative capital solutions to asset-focused investment opportunities. We believe our scale, coupled with our flexible mandate, makes Ares an ideal partner for private equity sponsors, as they seek to grow and optimise the balance sheets of their highest quality assets. We are delighted to be partnering with Lone Star in this landmark transaction for the UK market.”
