Quintain has signed an agreement with Hong Kong-based investment firm Knight Dragon, which will replace Lend Lease in a consortium that is developing the Greenwich Peninsula scheme in London, UK.
As per the agreement, Knight Dragon will provide debt funding of £300m for the scheme after acquiring a 60% stake in the consortium, Greenwich Peninsula Regeneration Limited (GPRL), while the remaining 40% stake will be owned by Quintain.
The GPRL consortium was a 50:50 joint venture originally formed by Lend Lease and Quintain to develop the Greenwich Peninsula scheme.
Lend Lease expects to receive around £100m for its stake in the joint venture, which is being bought out by Knight Dragon.
Quintain chief executive of Maxwell James said this deal is the next step in realising the inherent value in the company’s key London projects by attracting significant third party capital.
"It introduces a highly respected and experienced partner who brings considerable financial strength and a network of global relationships," James said.
The transaction paves way for the transformation of Greenwich Peninsula, which will see approximately 14 million ft² of residential-led mixed-use development, including the development of a 3.5 million ft² commercial district and up to 10,000 new homes in the 150-acre site.
The site will also include the development of new shops, hotels, schools and public facilities along 1.4 miles of the River Thames.
Quintain will act as the development and project manager for the mixed-use development for a period of six years, receiving an annual fee from GPRL, as well as providing site-wide development management services at Greenwich Peninsula.
Social housing and urban regeneration company Pinnacle Regeneration Group will provide investment monitoring and advisory services to the GPRL Group.
Pinnacle Regeneration Group CEO Perry Lloyd said this partnership is intended to build a new, sustainable community where there is a blend of housing in which people want to live.
"Pinnacle is delighted to be part of one of the largest urban regeneration schemes in Europe, and help deliver for Londoners the new housing they so desperately need," Lloyd said.
Image: The Greenwich Peninsula mixed-use development will include a commercial district and up to 10,000 new homes. Photo: Quintain