Watkin Jones plc Development Update (9473G)
July 29 2019 - 1:01AM
UK Regulatory
TIDMWJG
RNS Number : 9473G
Watkin Jones plc
29 July 2019
29 July 2019
Watkin Jones plc
('Watkin Jones' or the 'Group')
Development update
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, is
pleased to provide the following update on developments in its two
core sectors.
Student Accommodation (PBSA)
The Group has exchanged contracts with Europa Generation Student
LP for the forward sale of a 197 bed development in Canterbury. The
consideration payable to Watkin Jones is GBP19.6 million, net of
client funding costs. The development has planning consent and is
scheduled for completion ahead of the 2020/21 academic year.
Canterbury is home to three higher education institutions and this
development will be Watkin Jones' first development in the city.
The scheme is projected to deliver financial returns in line with
Group targets and provides further visibility of future earnings.
Watkin Jones has previously worked with Europa Generation Student,
forward selling a portfolio of six PBSA developments to them in
June 2017.
Watkin Jones has secured planning permission on a pipeline PBSA
development site in Leicester. The scheme will comprise a twelve
storey, 462 bed development made up of 415 clusters beds, 47
studios, amenity space and a commercial unit on the ground floor.
The site, which is in close proximity to the City centre and to De
Montfort University, is scheduled for completion ahead of the
2021/22 academic year. The Group previously delivered an adjacent
PBSA scheme, Merlin Heights, a 601 bed scheme in 2016.
Further to the announcement on 4 April 2019, the Group has now
completed the development funding agreement for 245 beds in Swansea
with Brookfield's student accommodation business, Student Roost for
completion ahead of the 2020/21 academic year.
The Group has also continued to build its PBSA development
pipeline, securing a prime site in Exeter close to the city centre.
The Group will now seek planning permission for a purpose built
student residence for up to 170 beds which is expected to be
completed ahead of the 2022/23 academic year.
Build to Rent (BTR)
Watkin Jones has recently secured a site in Brighton & Hove
with planning permission for 186 residential units and circa 2,000
square meters of commercial space. The site is situated in a prime
location within close proximity to Hove railway station, as well as
local retail and leisure amenities. Whilst it benefits from an
existing planning consent, Watkin Jones will re-work this consent
so that the development is able to become part of the Group's
growing Build to Rent development pipeline. The scheme is targeted
for delivery in FY 2022.
As mentioned above, the Group has secured planning for a PBSA
development in Leicester. In addition to the PBSA aspect, the Group
has also secured planning on an adjacent site for a Build to Rent
development of 184 units, comprising 31 studios, 101 one-bedroom
apartments and 52 two-bedroom apartments, as well as residents'
amenity space and car parking over six storeys, which is targeted
for delivery in FY 2021.
Richard Simpson, Chief Executive Officer of Watkin Jones, said:
"We continue to see positive momentum across all key areas of the
business. Our six PBSA schemes for delivery in FY 2019 are on track
for completion ahead of the 2019/20 academic year and we continue
to see an encouraging pipeline of potential future sites across the
UK. The final quarter of the financial year is typically a busy
period for the Group in terms of forward sale activity and we
expect that to be the case again this year in respect of both the
PBSA and Build to Rent pipelines.
Our expertise in acquiring sites at attractive prices, securing
planning consent and then forward selling the schemes to a wide
range of investors not only validates our business model but also
demonstrates that, even in a more complex market, our strategy
remains extremely resilient. The sectors in which we operate are
highly attractive to investors and we continue to make solid
progress against our internal targets."
- 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 Corporate Tel: +44 (0) 20 7418
Broker) 8900
Mike Bell / Ed Allsopp www.peelhunt.com
Jefferies Hoare Govett (Joint Corporate Broker) Tel: +44 (0) 20 7029
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 is a leading UK developer and constructor of multi
occupancy property assets, with a focus on the student
accommodation and Build to Rent 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 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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