We are pleased to announce that the company has completed the forward sale of a portfolio of four purpose-built student accommodation development schemes with an option agreement for a fifth scheme conditional on full planning consent for a total of 2,163 student beds.
The purchaser is a new client and is a joint venture between KKR and Round Hill Capital. This is the first student housing transaction for KKR and Round Hill through their JV in the United Kingdom.
The transaction price for the four forward sold developments is circa £180 million net of purchaser funding and transaction costs. There will be additional consideration in respect of the Bristol scheme once the option is exercised.
This represents the largest single transaction the company has completed in both number of beds and price and demonstrates Watkin Jones continued market leading presence in the UK PBSA market. This is the culmination of nearly a year’s work from across the Group including; Investment, Newmark, Planning and the North & South, North West & Midlands, South West & South Wales construction divisions. The portfolio is one of the most complex the group has packaged for sale and KKR and Round Hill Capital represent a new and very high profile investment partner. The scale and the magnitude of the construction projects are testimony to the Group’s strengths and abilities. The board would like to offer their thanks to all those involved.
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)
|Albion Way, London||283 (245 clusters / 38 studios)
|Forest Road, London||353 (298 clusters / 55 studios)
|Whitefriars Lane, Coventry||778 (681 clusters / 97 studios)
|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.”