Watkin Jones plc Forward sale of portfolio of developments (4316C)
01 Oktober 2018 - 8:00AM
UK Regulatory
TIDMWJG
RNS Number : 4316C
Watkin Jones plc
01 October 2018
For immediate release 1 October 2018
Watkin Jones plc
('Watkin Jones' or the 'Group')
Forward sale of portfolio of developments
Watkin Jones plc (AIM:WJG), a leading UK developer and
constructor of multi occupancy property assets, with a focus on the
student accommodation and build to rent sectors, is pleased to
announce that the Group has completed the forward sale of a
portfolio of four purpose-built student accommodation ('PBSA')
development schemes to a joint venture between KKR and Round Hill
Capital ('Round Hill') (the 'JV'). The Group has also exchanged an
option agreement with the JV, conditional on full planning consent,
for a fifth PBSA scheme in Bristol (the 'Portfolio').
The consideration payable to Watkin Jones over the course of the
four forward sold developments is circa GBP180 million, net of all
client funding and acquisition costs. This will be payable over the
period September 2018 to September 2020. Additional consideration
in respect of the Bristol scheme will be agreed once the option is
exercised.
The JV invests in student accommodation through multiple
strategies including acquiring existing assets, developing new
PBSA, forward-funding and repositioning assets across select
university towns and cities in the UK, Spain, Netherlands and wider
Europe. This is the first student housing transaction for KKR and
Round Hill through their JV in the United Kingdom.
The portfolio consists of 2,163 student accommodation beds and
associated commercial use classes. Four of the schemes have
planning consent granted with Bristol in the planning process.
Further information on the five developments is detailed in the
table below:
Development No. of beds Delivery date
--------------------------- ---------------------------------- --------------
Kyle Street, Glasgow 401 (341 clusters / 60 studios) September
2019
Albion Way, London 283 (245 clusters / 38 studios) September
2020
Forest Road, London 353 (298 clusters / 55 studios) September
2020
Whitefriars Lane, Coventry 778 (681 clusters / 97 studios) September
2020
Wilder Street, Bristol 348 (303 clusters / 45 studios) September
2021
Mark Watkin Jones, Chief Executive Officer of Watkin Jones plc,
said: "We are delighted to announce that we have successfully
completed the sale of a portfolio of four student accommodation
developments and exchanged an option agreement, conditional on full
planning consent, to sell a fifth development in Bristol.
"Watkin Jones has an established reputation as a leading
developer of high quality purpose-built student accommodation and
it is this reputation that has led us to work with KKR and Round
Hill in their first joint investment in the UK student housing
market. This is further validation of the ongoing opportunity for
Watkin Jones in the sector and the initial consideration of GBP180
million, for the four forward sold sites, helps further build the
Group's revenue visibility for the coming financial years."
- Ends -
For further information:
Watkin Jones plc
Mark Watkin Jones, Chief Executive Tel: +44 (0) 1248 362 516
Officer
Phil Byrom, Chief Financial Officer www.watkinjonesplc.com
Peel Hunt LLP (Nominated Advisor & Joint Broker) Tel: +44 (0) 20 7418
8900
Mike Bell / Justin Jones www.peelhunt.com
Jefferies Hoare Govett (Joint Broker) Tel: +44 (0) 20 7029
8000
Max Jones / Will Soutar www.jefferies.com
Media enquiries:
Buchanan
Henry Harrison-Topham / Richard Oldworth Tel: +44 (0) 20 7466 5000
Jamie Hooper / Steph Watson / Catriona
Flint
watkinjones@buchanan.uk.com www.buchanan.uk.com
Notes to Editors
Watkin Jones is a leading UK developer and constructor of multi
occupancy property assets, with a focus on the student
accommodation and build to rent sectors. The Group has strong
relationships with institutional investors, and a reputation for
successful, on-time-delivery of high quality developments. Since
1999, Watkin Jones has delivered more than 34,500 student beds
across 107 sites. In addition, Fresh Property Group, the Group's
specialist accommodation management company, manages more than
16,000 student beds on behalf of its institutional clients. Watkin
Jones has also been responsible for over 50 residential
developments, ranging from starter homes to executive housing and
apartments. The Group is now expanding its development and
management operations into the build to rent sector.
The Group's competitive advantage lies in its experienced
management team and business model, which enables it to offer an
end-to-end solution for investors, delivered entirely in-house with
minimal reliance on third parties, across the entire life cycle of
an asset.
Watkin Jones was admitted to trading on AIM in March 2016 with
the ticker WJG.L. For additional information please visit:
www.watkinjonesplc.com.
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END
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