Watkin Jones plc Update on Developments (5352S)
22 December 2016 - 6:00PM
UK Regulatory
TIDMWJG
RNS Number : 5352S
Watkin Jones plc
22 December 2016
For immediate release 22 December 2016
Watkin Jones plc
('Watkin Jones' or the 'Group')
Update on 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 provide the following
update on a number of its developments.
Additional forward sale
The Group announces that it has forward sold the student
accommodation element of its Duncan House development in Stratford
High Street, E15 to an institutional investor for an undisclosed
fee. This forward sale follows on from the announcement in June
2016 that the Group had received planning consent to progress with
the redevelopment of the site. The proposed redevelopment consists
of 511 beds of student accommodation (420 ensuite clusters and 91
self-contained studios); 44 residential dwellings including a
proportion of affordable housing in a mix of 1, 2 and 3 bedroom
units; a new education facility with 3,150m(2) gross internal floor
area ('GIA'), and 688m(2) GIA of affordable business workspace. The
residential units and academic floor space that form part of the
wider scheme will be sold in separate transactions by Watkin Jones.
The total gross development value of the scheme is in excess of
GBP100million. Demolition work has started on site and the
development is anticipated to be completed in the summer of 2019,
ahead of the 2019-2020 academic year.
Planning consents
Watkin Jones also announces that it has received planning
consents for three developments, two in Aberdeen and one in
Sheffield. The Aberdeen schemes include the redevelopment of
Pittodrie Street, which is in close proximity to Aberdeen
University, providing 618 beds of student accommodation and Caledon
House, which is situated in a prime location opposite Robert Gordon
University and will provide 199 beds of student accommodation (147
ensuite clusters and 52 self-contained studios). Caledon House is
scheduled to be completed in the summer of 2018, ahead of the
2018-19 academic year, whilst the Pittodrie Street development is
expected to be completed in the summer of 2019, ahead of the
2019-20 academic year. The development in Sheffield is located in
Rockingham Street, in close proximity to the University of
Sheffield, and will provide 543 beds of student accommodation (457
ensuite clusters, 69 self-contained studios and 17 one bed
apartments) as well as two commercial units totalling approximately
4,340 square feet. Rockingham Street is due for delivery in the
summer of 2018, ahead of the 2018-19 academic year.
Completed scheme sale
Furthermore, the Group is pleased to announce that its Athena
Hall development in Ipswich has now been sold for an undisclosed
amount to Arlington Investors Limited ("Arlington"). Situated on
the Quayside in Ipswich, Athena Hall services the University of
Suffolk and comprises 590 student beds. Built by Watkin Jones, the
development was completed in 2010 and has since been held and
operated in a joint venture arrangement. Athena Hall has been
managed by Fresh Student Living Limited ("Fresh"), a wholly owned
subsidiary of the Group, and Fresh will continue to manage the
asset for Arlington.
Mark Watkin Jones, Chief Executive Officer of Watkin Jones plc,
said: "It is very pleasing to provide such a positive update on a
number of our developments, all at different stages of their life
cycle. The planning consents granted for Pittodrie Street and
Caledon House are exciting as Aberdeen is an important contributor
to the knowledge economy in Scotland, with two universities and
approximately 21,000 full time students, and there is a recognised
need for purpose built student accommodation in the city. The
redevelopment of Rockingham Street in Sheffield provides us with an
opportunity to further extend our reach in this important
University city.
"With the forward sale of the student accommodation development
at Duncan House now completed we can concentrate on the
construction phase of this significant development, which will
serve the University of London when completed in the summer of
2019. We expect the Duncan House development to make an important
contribution to our earnings over the next three years.
"The Group's share of net funds from the sale of Athena Hall
will add to our cash position and through Fresh we will have the
added benefit of continuing to manage the asset going forward."
- Ends -
For further information:
Watkin Jones plc
Mark Watkin Jones, Chief Tel: +44 (0) 1248 362
Executive Officer 516
Phil Byrom, Chief Financial www.watkinjonesplc.com
Officer
Zeus Capital Limited (Nominated Adviser
& Joint Broker)
Corporate Finance
Dan Bate / Nick Cowles / Jamie Peel Tel: +44 (0) 161 831
1512
Corporate Broking Tel: +44 (0) 20 3829
5000
Dominic King / Benjamin Robertson www.zeuscapital.co.uk
Peel Hunt LLP (Joint Broker) Tel: +44 (0) 20 7418
8900
Mike Bell / Matthew Brooke-Hitching www.peelhunt.com
Media enquiries:
Buchanan
Henry Harrison-Topham / Richard Tel: +44 (0) 20 7466 5000
Oldworth / Jamie Hooper
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. Key components of the business model are:
-- Site identification - extensive experience of site
identification and acquisition facilitates high quality sites being
acquired;
-- Planning consents - in depth knowledge and experience of the
planning consent process specific to this type of asset facilitates
high success rates on planning applications;
-- In-house construction and delivery - in-house construction
expertise, management and delivery limits reliance on third parties
and, together with favourable contractual relationships with key
suppliers, enhances control of cost;
-- Funding structure - forward sale model reduces risk for
Watkin Jones and provides security and visibility of the asset
pipeline for investors. The Group has strong relationships with
blue chip investors, including a number that are repeat investors
in Watkin Jones developments; and
-- Asset management - dedicated property management division
provides a continued service solution to investors post development
completion and completes the 'end to end' business model.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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