Quintain shares rocket after debt renegotiation

* No equity raising planned

* Delivers annual cost savings of 20 pct

* Shares soar nearly 70 percent

LONDON, April 1 (Reuters) - Shares in property company Quintain Estates & Development (QED.L) soared by more than two-thirds after it announced it had renegotiated its banking covenants and would not seek an equity fundraising at this time.

In a trading update for the six months to March 31, Quintain said it had secured an option to relax the gearing covenant on all its medium and long-term credit facilities to 150 percent from 110 percent.

Shares gained 69 percent to close at 14.375 pence, trumping a 3.2 percent rise in broader UK property stocks .FTNMX8730.

Quintain, which specialises in urban regeneration across London, said a combination of reduced overheads, the suspension of the dividend and a 16 percent increase in annual income from rent had enabled the company to enhance its financial position and pump 98 million pounds ($140.6 million) back into the business.

It said expenditure on overheads during the past year has been significantly curtailed, achieving cost savings in excess of 20 percent on an annualised basis.