HBOS considers Quintan approach

Wembley Arena owner Quintain Estates & Development could be sold for £1.2bn (€1.77bn) after banking giant HBOS confirmed today it was eyeing the group for a takeover.

HBOS said it was in the early stages of “evaluating its options” after reports suggested it was lining up a bid following the bank’s move to snap up a 11.9% holding in Quintain last week.

The deal could reportedly value Quintain at £1.2bn (€1.77bn), although HBOS has yet to reveal any potential price details and stressed talks may not lead to an offer.

HBOS bought the holding in Quintain – which also owns the land around the Millennium Dome in south-east London – from Paul Kemsley, the multi-millionaire Tottenham Hotspur director.

HBOS has been linked with Mr Kemsley in the past, with reports earlier this year suggesting they were in talks to form a joint venture to build a residential and commercial property portfolio across Britain and Europe.

HBOS is active in the real estate sector via its corporate banking arm and is renowned for buying listed property firms and taking them private.

It also led takeover consortiums for the acquisition of housebuilders such as McCarthy & Stone and Crest Nicholson.

Quintain, which floated in 1996, last year reported a 25.5% rise in its net asset value, which is a key performance indicator for property companies.

Profits before tax, however, fell 20.5% to £51.6m (€76.3m).

Quintain is involved in a number of major projects in and around London, with the Wembley project one of its most ambitious to date.

It aims to redevelop the site, regenerating 6.1 million square feet on 55 acres and creating a £1.3bn (€1.9bn) development in the region that promises to bring 7,000 new jobs and 4,200 new homes to the area.