Last checked at 3 Oct 2017 07:00
For immediate release | 3 October 2017 |
Watkin Jones plc
('Watkin Jones' or the 'Group')
Completion of forward sales of two developments
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 exchanged contracts to forward sell a 618 student bed development in Pittodrie, Aberdeen to an unnamed institutional investor. The consideration payable to Watkin Jones over the course of the development, which is due for completion in the summer of 2019, is circa £51.1 million, net of client funding costs.
Following this agreement, Watkin Jones have now forward sold 2,599 of the 3,545 beds planned to be delivered during FY19, ahead of the 2019/2020 academic year. All schemes planned to be delivered during FY17 have been successfully handed over and all schemes due to be delivered during FY18 and ahead of the 2018/19 academic year have been forward sold.
In addition, the Group is also pleased to announce the forward sale of the office element of the major project on Christchurch Road, Bournemouth for £15.3 million, net of client funding costs. This forward sale completes the exit for the Group of the Christchurch Road development. This included 454 beds of student accommodation, which were completed and handed over in August 2017, as well as 129 hotel rooms for Premier Inn that has been forward sold. Completion of the Premier Inn is targeted for January 2018 and the office building for May 2018.
Mark Watkin Jones, Chief Executive Officer of Watkin Jones plc, said: "We are delighted to announce that we have successfully completed the forward sale of a further two developments.
"The demand for high quality purpose built student accommodation remains strong and the Group continues to secure, forward sell and develop a diverse pipeline of high quality sites, providing excellent earnings visibility for our shareholders."
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For further information:
Watkin Jones plc |
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Mark Watkin Jones, Chief Executive Officer | Tel: +44 (0) 1248 362 516 | |
Phil Byrom, Chief Financial Officer | www.watkinjonesplc.com | |
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Peel Hunt LLP (Nominated Adviser & Joint Corporate Broker) | Tel: +44 (0) 20 7418 8900 | |
Mike Bell / Justin Jones / Matthew Brooke-Hitching | www.peelhunt.com | |
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Jefferies Hoare Govett (Joint Corporate Broker) | Tel: +44 (0) 20 7029 8000 | |
Max Jones / Will Souter | www.jefferies.com | |
Media enquiries:
Buchanan |
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Henry Harrison-Topham / Richard Oldworth Jamie Hooper / Steph Watson |
Tel: +44 (0) 20 7466 5000 |
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 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 34,500 student beds across 107 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