Cardiff and Belfast developments forward sold

RNS Number : 6218Q

Watkin Jones plc

01 December 2016

 

For immediate release

1 December 2016

Watkin Jones plc

('Watkin Jones' or the 'Group')

Cardiff and Belfast developments forward sold

Watkin Jones plc (AIM:WJG), a leading UK developer and constructor of multi occupancy property assets, with a focus on the student accommodation sector, announces today that it has forward sold another two of its developments to two institutional investors, both for undisclosed fees. The first development is situated on Bridge Street in Cardiff and the other is situated on Queen Street in Belfast.

The Cardiff development occupies a prominent position in Cardiff City Centre, and is located close to Cardiff Queen Street station.   The 472 bed scheme is due for delivery in August 2018, ahead of the 2018-19 academic year. The Belfast development also occupies a prominent position in Belfast City Centre directly opposite John Bell House that was completed by Watkin Jones in August this year. This 340 bed scheme is also due for delivery in August 2018, ahead of the 2018-19 academic year.  

Mark Watkin Jones, Chief Executive Officer of Watkin Jones plc, said:  "We are delighted to announce today that we have forward sold our developments in Cardiff and Belfast to two institutional investors in purpose built student accommodation, which further underpins the visibility of our earnings and cashflow.  The interest in the sector remains strong."

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For further information:

Watkin Jones plc
Mark Watkin Jones, Chief Executive Officer	Tel: [phone]
Phil Byrom, Chief Financial Officer	www.watkinjonesplc.com

Zeus Capital Limited (Nominated Adviser & Joint Broker)
Corporate Finance
Dan Bate / Nick Cowles / Jamie Peel		Tel: [phone]
Corporate Broking		Tel: [phone]
Dominic King / Benjamin Robertson		www.zeuscapital.co.uk
Peel Hunt LLP (Joint Broker)		Tel: [phone]
Mike Bell / Matthew Brooke-Hitching		www.peelhunt.com

Media enquiries:

Buchanan
Henry Harrison-Topham / Richard Oldworth / Jamie Hooper	Tel: [phone]
[e-mail]	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 sector.  The Group has strong relationships with institutional investors, and a good reputation for successful, on-time-delivery of high quality developments.  Since 1999, Watkin Jones has delivered over 31,800 student beds across 98 sites, making it a key player and leader in the UK purpose built student accommodation market.  In addition, Watkin Jones has been responsible for over 50 residential developments, ranging from starter homes to executive housing and apartments.

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.  Key components of the business model are:

·     Site identification - extensive experience of site identification and acquisition facilitates high quality sites being acquired;

·     Planning consents - in depth knowledge and experience of the planning consent process specific to this type of asset facilitates high success rates on planning applications;

·     In-house construction and delivery - in-house construction expertise, management and delivery limits reliance on third parties and, together with favourable contractual relationships with key suppliers, enhances control of cost;

·     Funding structure - forward sale model reduces risk for Watkin Jones and provides security and visibility of the asset pipeline for investors.  The Group has strong relationships with blue chip investors, including a number that are repeat investors in Watkin Jones developments; and

·     Asset management - dedicated property management division provides a continued service solution to investors post development completion and completes the 'end to end' business model.

 

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