Update on developments completed in 2016

RNS Number : 8585K

Watkin Jones plc

27 September 2016

 

For immediate release

27 September 2016

Watkin Jones plc

('Watkin Jones' or the 'Group')

Update on developments completed in 2016

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 provide the following update on the Group's developments that have been completed ahead of start of the 2016/17 academic year.

In total Watkin Jones has completed ten developments across the UK with a total of 3,819 student beds.  The breakdown of these completed developments is detailed in the table below:

Development	No. of beds
Heriot-Watt, Edinburgh	450
Dunaskin, Glasgow	504
Old Dumbarton Road 2, Glasgow	128
Belle Vue, Leeds	324
Bath Lane, Leicester	601
Byrom Street, Liverpool	398
Broad Lane, Sheffield	397
New Bridewell, Bristol	500
Brougham Hayes, Bath	104
John Bell House, Belfast	413
Total	3,819

Mark Watkin Jones, Chief Executive Officer of Watkin Jones plc, said:  "At the time of our AIM admission in March this year, we stated that our pipeline of development projects scheduled for completion before 31 August 2017 totalled 17.  It is therefore pleasing to be able to update investors today that the Group has completed and handed over ten developments ahead of the current academic year and is very much on track to deliver the remaining seven ahead of the 2017/2018 academic year, in line with our expectations.

"We continue to add new sites to our strong development pipeline. Watkin Jones currently has 19 developments with 6,317 beds targeted for delivery during 2017 and 2018.  An additional two sites are being acquired which will add a further 418 beds to 2018.  The pipeline beyond this is looking positive with 2,000 plus beds across a number of sites having been secured.  This pipeline provides the Group with strong visibility of earnings going forward and underpins our strategy in the short term."

- Ends -

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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