Watkin Jones plc (AIM:WJG), a leading UK developer and constructor of multi occupancy property assets, with a focus on the student accommodation and build to rent sectors, is pleased to announce that the Group has completed the forward sale of a portfolio of four purpose-built student accommodation ('PBSA') development schemes to a joint venture between KKR and Round Hill Capital ('Round Hill') (the 'JV'). The Group has also exchanged an option agreement with the JV, conditional on full planning consent, for a fifth PBSA scheme in Bristol (the 'Portfolio').
The consideration payable to Watkin Jones over the course of the four forward sold developments is circa £180 million, net of all client funding and acquisition costs. This will be payable over the period September 2018 to September 2020. Additional consideration in respect of the Bristol scheme will be agreed once the option is exercised.
The JV invests in student accommodation through multiple strategies including acquiring existing assets, developing new PBSA, forward-funding and repositioning assets across select university towns and cities in the UK, Spain, Netherlands and wider Europe. This is the first student housing transaction for KKR and Round Hill through their JV in the United Kingdom.
The portfolio consists of 2,163 student accommodation beds and associated commercial use classes. Four of the schemes have planning consent granted with Bristol in the planning process. Further information on the five developments is detailed in the table below:
|
Development |
No. of beds |
Delivery date |
|
Kyle Street, Glasgow |
401 (341 clusters / 60 studios)
|
September 2019 |
|
Albion Way, London |
283 (245 clusters / 38 studios)
|
September 2020 |
|
Forest Road, London |
353 (298 clusters / 55 studios)
|
September 2020 |
|
Whitefriars Lane, Coventry |
778 (681 clusters / 97 studios)
|
September 2020 |
|
Wilder Street, Bristol |
348 (303 clusters / 45 studios) |
September 2021 |
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 four student accommodation developments and exchanged an option agreement, conditional on full planning consent, to sell a fifth development in Bristol.
“Watkin Jones has an established reputation as a leading developer of high quality purpose-built student accommodation and it is this reputation that has led us to work with KKR and Round Hill in their first joint investment in the UK student housing market. This is further validation of the ongoing opportunity for Watkin Jones in the sector and the initial consideration of £180 million, for the four forward sold sites, helps further build the Group's revenue visibility for the coming financial years.”