Sale of three non-core PRS operational assets

Watkin Jones plc

17 August 2023

 

17 August 2023

Watkin Jones plc

('Watkin Jones' or the 'Group')

Sale of three non-core Private Rented Sector operational assets

Watkin Jones is pleased to announce that it has concluded the sale of its three non-core Private Rented Sector operational assets, located in Sheffield and Manchester, to L1 Capital.

After repayment of the related debt financing and disposal costs, the net cash inflow to the business will be an initial £9 million in Q4 FY23 and a further £2 million deferred payment in H1 FY24.  This will augment the Group's FY23 year-end cash position, as well as supporting the business' ability to be proactive in the land market.

The transaction will crystalise a book loss on disposal, which is fully reflected in the expected impairment charge for FY23, highlighted in the Group's trading update of 19 July 2023.

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For further information:

Watkin Jones plc
Alex Pease, Interim Chief Executive Officer	Tel: [phone]
Sarah Sergeant, Chief Financial Officer	www.watkinjonesplc.com
Peel Hunt LLP (Nominated Adviser & Joint Corporate Broker)		Tel: [phone]
Mike Bell / Ed Allsopp		www.peelhunt.com
Jefferies Hoare Govett (Joint Corporate Broker)		Tel: [phone]
James Umbers/David Sheehan / Paul Bundred		www.jefferies.com

Media enquiries:

Buchanan
Henry Harrison-Topham / Jamie Hooper	Tel: [phone]
[e-mail]	www.buchanan.uk.com

Notes to Editors

Watkin Jones is the UK's leading developer and manager of residential for rent, with a focus on the build to rent, student accommodation and affordable housing 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 48,000 student beds across 143 sites, making it a key player and leader in the UK purpose-built student accommodation market, and is increasingly expanding its operations into the build to rent sector.  In addition, Fresh, the Group's specialist accommodation management business, manages over 22,000 student beds and build to rent apartments on behalf of its institutional clients.  Watkin Jones has also been responsible for over 80 residential developments, ranging from starter homes to executive housing and apartments.

The Group's competitive advantage lies in its experienced management team and capital-light 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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