Quintain has said the sale of its 50 per cent stake in a Hilton hotel will speed up the construction of homes at its Wembley Park development.
The developer sold its 50 per cent interest in the Wembley hotel to its joint venture partner Oaktree Capital Management for £40m and said the proceeds will enable the company to accelerate construction onsite.
The sale price came to a £6m premium to the March 2015 book value of the 361-bed hotel.
Quintain’s next scheme to be delivered at Wembley Park is the 362-home Alto village scheme, the preconstruction of which will be carried out by Wates.
The developer holds outline planning consent for around 4,000 more homes on the site.
Quintain chief executive Max James said: “This transaction enables us to crystallise value from our investment in the Hilton which has contributed significantly to the placemaking at Wembley Park.
“We will recycle the profits into accelerating the construction of new homes at Wembley Park, where we continue to achieve good prices on the apartments at Emerald Gardens and our latest development, Alto.”
The announcement came as the developer posted a pre-tax profit of £6.2m for the year ended 31 March 2015, up from £4.2m the year before.
Its net asset value was up 7 per cent to £639.4m, compared with £595.4m the previous year.
The developer said this rise reflected 13.8 per cent growth within its development portfolio and “the growing income profile of [its] investment assets at Wembley Park”, which saw a 4.7 per cent increase in valuation.