Quintain puts £133m into expansion

Quintain Estates & Development is pumping £133.5m into acquisitions and growing its income-generating fund management arm in 2010 after months of defending its balance sheet from property market turmoil.

Quintain, which specialises in redeveloping towns and cities across Britain, said last year's 183.5m rights issue has slashed the firm's gearing by more than half to 43 per cent, giving the company

a "substantial buffer" against further economic distress and the

firepower to chase new buys.

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Chief executive Adrian Wyatt said: "With equity available and a significantly reduced level of gearing, we will continue to progress our existing schemes, drive substantial growth in the fund management business and capitalise on the many opportunities current market conditions present."

The company said it had seen evidence of a recovering property market with a number of sales achieved at a premium to valuation.

However, it said conditions in the mainstream market remained uncertain and it would maintain its focus on alternative asset classes such as healthcare and student accommodation, which benefit from resilient income streams.

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