Quintain invests in new LLP

Quintain Estates and Development has agreed to invest £10.7m to buy a 28 percent shareholding in Albemarle Retail Properties (ARP). ARP is a newly created limited liability partnership and a registered investment vehicle with £72m of retail assets across the UK.

Quintain’s investment in ARP is structured to provide a 10 percent annual paid coupon and a priority return on exit. It will provide strategic asset management advice to ARP and it will be a member of the Management Committee. Quintain’s equity stake will be financed out of existing cash resources. The Royal Bank of Scotland will provide debt financing to ARP.

ARP has been created through the merger of four existing Albemarle funds, managed by Egan Property Asset Management. Assets comprise 105 units – mostly shops – let to 95 different tenants with 70 percent exposure to UK multiples. They include Waitrose, Boots, Burton Group and The Co-operative.

David Gavaghan, executive director, fund management, at Quintain, said the deal demonstrated the strength of Quintain’s asset management and financing capabilities and its willingness to work with owners and financiers of active property portfolios where it saw the opportunity to create value in the medium term.