Last checked at 30 Aug 2017 07:00
For immediate release | 30 August 2017 |
Watkin Jones plc
('Watkin Jones' or the 'Group')
Completion of a forward sale and a development agreement for 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 forward sold a development of 354 beds on Little Patrick Street in Belfast and completed a development agreement to deliver 972 beds on the Hollis Croft scheme in Sheffield to the same institutional investor. The consideration payable to Watkin Jones plc over the course of the developments is circa £90 million, net of client funding costs.
Both developments are due for completion for the summer of 2019 and, following these agreements, Watkin Jones have now forward sold 1,981 of the 3,545 beds planned to be delivered ahead of the 2019/2020 academic year. All schemes to be delivered during FY17 and FY18 and ahead of the 2017/2018 and 2018/2019 academic years have been forward sold.
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 development for 354 beds in Belfast and entered into a development agreement to deliver 972 beds in Sheffield for the same institutional investor. Combined the developments are worth circa £90 million to the Group and both developments are to be completed ahead of the 2019/2020 academic year. We now have revenue and earnings visibility on 1,981 of the 3,545 beds we plan to deliver in FY19, with the remaining beds having been secured and working through the early stages of our business model.
"These agreements further demonstrate the Group's strong and growing relationships with institutional investors, as well as the continuing demand for high quality purpose built student accommodation. Our ability to secure, fund and develop a pipeline of attractive sites provides 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 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