Watkin Jones plc
('Watkin Jones' or the 'Group')
Update on Build to Rent Developments
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, confirms that the Group has entered into a development arrangement with M&G Real Estate ('M&G') and Lochailort to deliver a 315 apartment build to rent scheme in Reading. As part of the arrangement, Watkin Jones has entered into a development funding agreement with M&G, under which it will receive £68.5 million for the development works which it is to carry out. Construction is due to commence on site immediately, with completion targeted for 2021.
Watkin Jones has been appointed as the developer for the purpose-designed build to rent scheme, which comprises 315 high specification studio, one, two and three bed apartments. Residents will benefit from outstanding facilities including a triple height atrium, cinema room, multiple private dining facilities, tenant lounges and a selection of rooftop terraces.
The Reading development agreement represents an important additional opportunity for Watkin Jones' build to rent strategy, alongside the Group's growing owned site pipeline. As reported in the Group's trading update on 5 April 2018, the Group is in control of five build to rent development sites and remains in positive negotiations on several other development opportunities. The Group continues to expect to deliver over 1,500 units in the next five years.
Mark Watkin Jones, Chief Executive of Watkin Jones plc, said: “We are delighted to have been chosen to work with M&G and Lochailort to deliver this high specification build to rent scheme in Reading. It is particularly pleasing that our partners recognised our development expertise and we see this as a catalyst to securing more build to rent development opportunities. The development agreement for the Reading scheme replicates the delivery elements of our student accommodation model and, alongside the excellent visibility in our student accommodation development business, reinforces our confidence in our business model and the markets in which we operate.”