Forward sale of six developments for GDV of £165m

RNS Number : 8731H

Watkin Jones plc

13 June 2017

 

For immediate release

13 June 2017

Watkin Jones plc

('Watkin Jones' or the 'Group')

Forward sale of portfolio of six developments for a gross development value of £165 million

Watkin Jones plc (AIM:WJG), a leading UK developer and constructor of multi occupancy property assets, with a focus on the student accommodation sector, is pleased to announce that the Group has completed the forward sale of a portfolio of six developments (the 'portfolio') to an institutional investor, Europa Generation, for a gross development value of £165 million.  The consideration payable to Watkin Jones plc over the course of the developments is circa £153 million, net of client funding costs.  Europa Generation is a joint venture by Europa Capital and Generation Estates Limited established to invest in prime purpose built student accommodation in the UK.

The portfolio consists of 1,691 student accommodation beds and 14 residential units, which all have planning consent granted.  Further information on the six developments is detailed in the table below:

Development	No. of beds	Delivery date
Caledon House, Aberdeen	199 (147 clusters / 52 studios)	September 2018
Bailey Fields, Sheffield	543 (457 clusters / 69 studios / 17 one beds)	September 2018
Market Street, Newcastle	225 (177 clusters / 48 studios)	September 2018
Midland Road, Bath	108 (94 student beds / 14 residential units)	September 2018
Oxford House, Bournemouth	486 (410 clusters / 76 studios / 32,205sq.ft. of academic space / commercial space / car parking)	September 2018
Between Towns Road, Oxford	144 (140 clusters / 4 studios / c.869sq.ft. retail unit)	September 2019

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 six student accommodation developments to Europa Generation for a gross development value of £165 million.  The Group has now forward sold all of its developments that are planned for completion by September 2018.  In addition, with the Between Towns Road, Oxford development for delivery in 2019, the number of developments forward sold for delivery before September 2019 has moved to 21, which represents 6,794 beds.

"This sale demonstrates that the Group continues to benefit from having very strong and growing relationships with institutional investors, as well as our ability to provide excellent earnings visibility for our shareholders."

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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
Peel Hunt LLP (Nominated Adviser & Joint Corporate Broker)		Tel: [phone]
Mike Bell / Justin Jones / Matthew Brooke-Hitching		www.peelhunt.com
Jefferies Hoare Govett (Joint Corporate Broker)		Tel: [phone]
Max Jones / Will Souter		www.jefferies.com

Media enquiries:

Buchanan
Henry Harrison-Topham / Richard Oldworth Jamie Hooper / Steph Watson	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. 

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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