TIDMWJG
RNS Number : 0648V
Watkin Jones plc
04 April 2019
For immediate release 4 April 2019
Watkin Jones plc
('Watkin Jones' or the 'Group')
Pre-Close Trading Statement
Watkin Jones plc (AIM:WJG), a leading UK developer and
constructor of multi-occupancy residential property assets, with a
focus on the student accommodation and build to rent sectors,
announces its pre-close trading statement for the half year ended
31 March 2019 (the 'period').
The Board reports that the Group continues to deliver a good
trading performance, in line with its expectations.
Student Accommodation
The Group added to its forward sold development pipeline,
reflecting continued strong demand from institutional investors.
Notable highlights include the previously announced forward sale of
a 599 bed student accommodation development in Wembley to the
global investor DWS, which is scheduled for delivery ahead of the
2021/22 academic year. The Wembley scheme represents DWS' first
student accommodation acquisition in the UK, reflecting confidence
in both Watkin Jones and the UK student accommodation market.
The Group has also exchanged contracts with Brookfield's student
accommodation business, Student Roost, for the development of a 245
bed scheme in Swansea, which is scheduled for completion ahead of
the 2020/21 academic year. This represents the third phase in the
development of a total of 960 student accommodation beds at the
Swansea site, following the success of the first two phases already
owned by Student Roost.
Watkin Jones currently has a secured development pipeline in
excess of 7,500 beds across 17 sites, which are scheduled for
delivery over the period FY19 to FY21. Of these, 11 sites (5,334
beds) have been forward sold. All of the six schemes (2,723 beds)
under construction for delivery in FY19, ahead of the 2019/20
academic year, are progressing in line with expectations.
Build to Rent
Investor interest in the burgeoning build to rent market
continues to gain momentum and the Group is positioning itself to
be a leading developer and manager in this sector, leveraging its
experience in purpose built student accommodation.
The Group added significantly to its build to rent development
pipeline in the period through the acquisition of a prime site for
336 apartments in Woking and successfully obtained the final
planning consent for 166 apartments on its site in Sutton. Watkin
Jones is now in control of a high quality, geographically diverse
build to rent development pipeline, including three sites with
planning (415 apartments) and three sites (circa 800 apartments)
for which planning is being progressed.
In addition to its own pipeline of sites, the Group is
progressing well with the previously announced development of 315
apartments in Reading for M&G Real Estate and has commenced
development of the 300-apartment scheme in Wembley for Singaporean
investors.
Accommodation Management
Fresh Property Group ('FPG'), the Group's specialist
accommodation management business, continues to perform well, with
15,421 units under management across 56 schemes at the start of
FY19. By FY22, FPG is currently appointed to manage 21,018 units
across 73 schemes.
Residential
The Group's residential business has seen a robust level of
sales activity in the first half of the year, reflecting the
relative strength of its primary North West market.
Richard Simpson, Chief Executive Officer of Watkin Jones, said:
"The Group's continued good trading performance underlines the
strength of the Watkin Jones business model, even during times of
broader uncertainty. Leveraging our development and property
management expertise into the attractive purpose built student
accommodation and build to rent sectors, which are well supported
by institutional investor demand, continues to deliver solid
returns for the Group and its shareholders. We are making good
progress in the financial year and remain confident in the Group's
medium term prospects."
Notice of Results
The Group will be announcing its Half Year Results on Tuesday,
21 May 2019. An analyst briefing will be held at 09.30hrs at the
offices of Buchanan, 107 Cheapside, London EC2V 6DN.
- Ends -
For further information:
Watkin Jones plc
Richard Simpson, Chief Executive Tel: +44 (0) 1248 362 516
Officer
Phil Byrom, Chief Financial Officer www.watkinjonesplc.com
Peel Hunt LLP (Nominated Adviser & Joint Tel: +44 (0) 20 7418
Corporate Broker) 8900
Mike Bell / Justin Jones www.peelhunt.com
Jefferies Hoare Govett (Joint Corporate Tel: +44 (0) 20 7029
Broker) 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
watkinjones@buchanan.uk.com www.buchanan.uk.com
Notes to Editors
Watkin Jones plc
Watkin Jones is a leading UK developer and constructor of
multi-occupancy residential property assets, with a focus on the
student accommodation and build to rent sectors. 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 38,000 student
beds across 117 sites, making it a key player and leader in the UK
purpose built student accommodation market. In addition, the Fresh
Property Group, the Group's specialist accommodation management
company, manages over 15,000 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
is now expanding its 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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