REG - Watkin Jones plc - Successful £155m forward sale with L&G and Clanmil

Watkin JonesAnnouncement

05/06/2023 07:00

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RNS Number : 5730B  Watkin Jones plc  05 June 2023

     5 June 2023

 

 

Watkin Jones plc

('Watkin Jones' or the 'Group')

 

Forward sale of Loft Lines, Titanic Quarter to L&G and Clanmil

 

Watkin Jones is pleased to announce the forward sale of Loft Lines, at Titanic
Quarter in Belfast, to L&G and Clanmil Housing Association ('Clanmil').
 The development funding comprises 627 Built to Rent ('BTR') units and 81
social rent affordable homes.

 

This project will be the first BTR scheme in Belfast, part of one of the
largest waterfront regeneration sites in Europe.  Loft Lines will be a
brand-new urban riverside community built on Queen's Island, in the centre of
Titanic Quarter, Belfast.  The development will help to further catalyse the
regeneration of Queens Island, alongside helping to transform Belfast city
centre living, bringing attractive residential homes to the area for the first
time and a significant boost to the local economy.

 

The total consideration payable to the Group over the course of the
development will be approximately £155 million.  The scheme is scheduled for
delivery in summer 2026 and is expected to deliver a margin in line with
current target returns.  Construction work on the development will not start
meaningfully until FY24 and therefore the profit contribution to FY23 will be
restricted to a small profit on the land transaction, as expected.

 

Richard Simpson, Chief Executive Officer of Watkin Jones, said: "We are
delighted to have secured institutional investment from both L&G and
Clanmil Housing Association for this landmark scheme in Belfast's iconic
Titanic Quarter.  This is further evidence of the attractive investment and
operational fundamentals of both BTR as a sector and Belfast as a city and a
good sign of capital markets re-opening."

 

- Ends -

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) No 596/2014 as it forms part of UK Domestic
Law by virtue of the European Union (Withdrawal) Act 2018 ("UK MAR")

 

For further information:

 Watkin Jones plc
 Richard Simpson, Chief Executive Officer  Tel: +44 (0) 20 3617 4453
 Sarah Sergeant, Chief Financial Officer   www.watkinjonesplc.com (http://www.watkinjonesplc.com/)

 Peel Hunt LLP (Nominated Adviser & Joint Corporate Broker)                  Tel: +44 (0) 20 7418 8900
 Mike Bell / Ed Allsopp                                                      www.peelhunt.com (http://www.peelhunt.com/)

 Jefferies Hoare Govett (Joint Corporate Broker)                             Tel: +44 (0) 20 7029 8000
 James Umbers/David Sheehan / Paul Bundred                                   www.jefferies.com (http://www.jefferies.com/)

 

Media enquiries:

 Buchanan
 Henry Harrison-Topham / Jamie Hooper  Tel: +44 (0) 20 7466 5000
 watkinjones@buchanan.uk.com           www.buchanan.uk.com

 

Notes to Editors

Watkin Jones is the UK's leading developer and manager of residential for
rent, with a focus on the build to rent, student accommodation and affordable
housing sectors. The Group has strong relationships with institutional
investors, and a reputation for successful, on-time-delivery of high quality
developments.  Since 1999, Watkin Jones has delivered 48,000 student beds
across 143 sites, making it a key player and leader in the UK purpose-built
student accommodation market, and is increasingly expanding its operations
into the build to rent sector.  In addition, Fresh, the Group's specialist
accommodation management business, manages over 22,000 student beds and build
to rent apartments on behalf of its institutional clients.  Watkin Jones has
also been responsible for over 80 residential developments, ranging from
starter homes to executive housing and apartments.

 

The Group's competitive advantage lies in its experienced management team and
capital-light 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
(http://www.watkinjonesplc.com/)

 

 

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