Quintain Estates & Developments has formed a joint venture (JV) with Keystone Developers to deliver the next phase of its residential development at Wembley Park, London, UK.
The 50:50 JV will deliver the next 306,000ft² phase of the scheme, which will feature seven buildings containing 475 homes arranged around an acre of private gardens.
The JV will pay £22.7m to Quintain for the 2.5 acre plot and £9.5m for associated infrastructure.
Under the agreement, Quintain will own 50% of the equity in the JV and receive cash proceeds of £13.6m to be paid around the completion of the first phase, with a further £2.5m to be paid on completion of the first phase, which is expected in 2016.
Two of the planned buildings, covering 93,000ft² and featuring 143 homes, will be built for Quintain, for which the company will pay the JV £37.1m.
The remaining development land at Wembley Park was valued at £312m by the end of September 2013 and consent is held to construct 5,000 new homes on the land, alongside 1.9 million ft² of office, leisure, retail and student development.
Quintain Estates & Developments chief executive Maxwell James said the agreement allows the company to establish a sustainable development programme for Wembley Park and recycle capital into its London investment portfolio in order to create better returns for shareholders.
"This joint venture unlocks value for shareholders from our largest London asset, paving the way for the delivery of more new homes at Wembley into a supply-constrained London housing market," James said.
Keystone Group chairman Giorgio Laurenti said, "We first cemented our partnership through the successful acquisition of the Wembley student accommodation building in 2011 and are pleased to continue investing in Wembley as the area regenerates into an increasingly vibrant location."