REG - Watkin Jones plc - Watkin Jones announces £182m PBSA Joint Venture

Watkin JonesAnnouncement

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RNS Number : 2909B  Watkin Jones plc  30 September 2025

 

30 September 2025

 

Watkin Jones plc

('Watkin Jones' or the 'Group')

 

£182m PBSA Joint Venture between Watkin Jones & Maslow Capital

 

Watkin Jones, the UK's leading developer and manager of residential for rent,
is pleased to announce the sale of a new c.784 bed purpose-built student
accommodation ('PBSA') scheme in Glasgow (the "Ard") to a newly created joint
venture (the "JV Entity") owned 95% by Maslow Capital and 5% by the Group (the
"Transaction"). The Ard will deliver high-quality accommodation in one of the
UK's prime cities for student living, in a central location highly accessible
to Glasgow's main universities.

 

The Transaction, which has a projected Gross Development Value of c.£182m at
completion, will generate secured revenues for the Group of approximately
£115m over the course of its three-year construction period. In addition,
there is the potential to generate further revenue through the sale of the
property once completed (the "Realisation Sale").

 

Under the structure, the Group will be responsible for the delivery of the
scheme through to completion, as well as its ongoing management by Fresh, the
Group's accommodation management business. Completion is targeted for the
start of the 2028/29 academic year.

 

The Transaction will deliver an initial net cash receipt of c.£16m, as well
as contributing to the Group's revenue and profitability in FY2025. Further
income will be phased over the course of the construction process. The
Group will also benefit from additional revenue proportionate to any returns
in excess of agreed hurdle rates delivered by a Realisation Sale. Any such
sale is not expected to occur before Q4 2028.

 

This is Watkin Jones' first transaction with Maslow Capital and is a further
demonstration of the Group's ability to broaden its portfolio of funding
partners against a backdrop of continued volatility within the UK's
residential development and construction sectors.

 

This transaction, together with the continued strong operational delivery
across the business through the second half, is expected to enable the Group
to meet its financial expectations for FY2025.

 

Alex Pease, Chief Executive Officer of Watkin Jones, commented:

"This transaction represents a significant further step for the Group as we
seek to diversify our business model and create innovative development funding
structures.  Maslow Capital is an excellent partner for Watkin Jones, and
their entry into a joint venture with the Group is a great endorsement of our
successful track record and extensive experience in residential development
and construction.

 

Related party transaction

 

For operational purposes, the JV Entity will initially have three statutory
directors, being Alex Pease, the Group's CEO, Simon Jones, the Group's CFO,
and George Dyer, Group Investment Director. Accordingly, the JV Entity will be
a related party of the Group, and the entry into the Transaction (including
the associated development, financing and management agreements between the
Group and the JV Entity), constitutes a related party transaction pursuant to
Rule 13 of the AIM Rules for Companies.

 

The Independent Directors, being all directors of the Group other than Alex
Pease and Simon Jones, having consulted with the Company's nominated adviser,
Peel Hunt, consider the entry into the Transaction is fair and reasonable
insofar as the Company's shareholders are concerned.

 

 
- 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
 Alex Pease, Chief Executive Officer                             Tel: +44 (0) 20 3617 4453
 Simon Jones, Chief Financial Officer                            www.watkinjonesplc.com
 Adam McGhin, Chief Legal Officer & Company Secretary

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

 Singer Capital Markets (Joint Corporate Broker)                 Tel: +44 (0)20 7496 3000

 Sara Hale / Graham Hertrich / James Todd                        www.singercm.com

 Media enquiries:
 MHP Group (Watkin Jones)                                        Tel: +44 (0) 7711 191518
 Reg Hoare / Rachel Farrington / Catherine Chapman               www.watkinjones@mhpgroup.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 over 50,000 student beds
across 147 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, where it has delivered 2,200 apartments across
12 schemes to date. In addition, Fresh, the Group's specialist accommodation
management business, manages c.21,000 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.

 

 

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