Quintain Estates, the developer behind the redevelopment of Wembley and Greenwich in London, has been forced to freeze its dividend as it looks preserve cash amid worsening property market conditions.

In a trading statement for the three months to end of June, Quintain said it would withhold dividends for up to two years to preserve cash. It hopes to raise up to £100m of cash from investments over the next 12 months, and reduce overheads by 10%. It has already reduced staff at Wembley, the estates management group, and is seeking additional equity in the £2.5bn project.

Market conditions, it warned, had continued to deteriorate throughout the first quarter and the environment will remain challenging into the next financial year. Quintain said that £95m of corporate debt and £101m non-recourse joint venture debt had been raised since April.

Financial Times