Wembley Arena
Quintain Estates and Development plans to develop land it owns around Wembley Stadium Reuters

Lone Star has agreed to acquire UK property developer Quintain Estates and Development, owner of Wembley Arena, for £700m (€990m, $1.1bn).

The US private equity group will pay 131 pence per share for Quintain, representing a 22% premium to Quintain's closing price on 29 July.

The transaction has been approved by the Quintain board, and each of the directors will accept the offer and sell their collective stake of about 0.3%.

"Since 2012, Quintain has undergone a major transformation which has seen the business dispose of non-core assets, progressively rebalance the business to focus on London and materially de-gear the balance sheet, creating a strong platform for growth," said Quintain CEO Maxwell James.

He added that the offer "crystallises value for shareholders at an early stage whilst enabling Quintain's vision for Wembley Park to be accelerated through the addition of significant financial resources, creating more mainstream homes in the capital more quickly than would otherwise be possible."

Lone Star said the acquisition would help it gain further exposure to residential and commercial assets in London.

The company intends to "contribute significant additional financial resources to help Quintain in its next phase of growth: to accelerate delivery at Wembley Park, building more homes more quickly and continuing the creation of a cohesive and exciting new community."

Quintain plans to build 5,500 homes along with shops and restaurants at its land around Wembley Stadium over the next decade. The developer is expected to apply for planning permission for the 43 acres on the Eastern Lands at Wembley Park towards the end of 2015.