Watkin Jones plc Forward sale of six developments for GDV of £165m (8731H)

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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 GBP165 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 GBP165 million. The consideration payable to Watkin Jones plc over the course of the developments is circa GBP153 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,     199 (147 clusters /          September 
   Aberdeen           52 studios)                  2018 
 Bailey Fields,     543 (457 clusters /          September 
  Sheffield          69 studios / 17 one          2018 
                     beds) 
 Market Street,     225 (177 clusters /          September 
  Newcastle          48 studios)                  2018 
 Midland Road,      108 (94 student beds         September 
  Bath               / 14 residential units)      2018 
 Oxford House,      486 (410 clusters /          September 
  Bournemouth        76 studios / 32,205sq.ft.    2018 
                     of academic space / 
                     commercial space / 
                     car parking) 
 Between Towns      144 (140 clusters /          September 
  Road, Oxford       4 studios / c.869sq.ft.      2019 
                     retail unit) 
 

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 GBP165 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."

- Ends -

For further information:

 
Watkin Jones plc 
Mark Watkin Jones, Chief                               Tel: [phone] 
 Executive Officer                                                       516 
Phil Byrom, Chief Financial                           www.watkinjonesplc.com 
 Officer 
 
Peel Hunt LLP (Nominated Adviser & Joint Corporate           Tel: +44 (0) 20 
 Broker)                                                           7418 8900 
Mike Bell / Justin Jones / Matthew Brooke-Hitching          www.peelhunt.com 
 
 
Jefferies Hoare Govett (Joint Corporate Broker)              Tel: +44 (0) 20 
                                                                   7029 8000 
Max Jones / Will Souter                                    www.jefferies.com 
 
 

Media enquiries:

 
Buchanan 
Henry Harrison-Topham / Richard   Tel: [phone] 
 Oldworth 
 Jamie Hooper / Steph Watson 
[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

This information is provided by RNS

The company news service from the London Stock Exchange

END

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June 13, 2017 02:00 ET (06:00 GMT)