Watkin Jones forward-sells Belfast development

Developer and constructor of multi-occupancy property assets, Watkin Jones, announced on Wednesday that it has forward-sold a development of 354 beds on Little Patrick Street in Belfast, and completed a development agreement to deliver 972 beds on the Hollis Croft scheme in Sheffield to the same institutional investor.

The AIM-traded company said the consideration payable to Watkin Jones over the course of the developments was £90m, net of client funding costs.

Both developments were due for completion for the summer of 2019 and, following the agreements, Watkin Jones had now forward-sold 1,981 of the 3,545 beds planned to be delivered ahead of the 2019/2020 academic year.

All schemes to be delivered during FY17 and FY18 and ahead of the 2017/2018 and 2018/2019 academic years had been forward sold, the board confirmed.

“We are delighted to announce that we have successfully completed the forward sale of a development for 354 beds in Belfast and entered into a development agreement to deliver 972 beds in Sheffield for the same institutional investor,” said chief executive Mark Watkin Jones.

“Combined the developments are worth circa £90m to the group and both developments are to be completed ahead of the 2019/2020 academic year.”

Jones said the company now had revenue and earnings visibility on 1,981 of the 3,545 beds it planned to deliver in FY19, with the remaining beds having been secured and working through the early stages of its business model.

“These agreements further demonstrate the group's strong and growing relationships with institutional investors, as well as the continuing demand for high quality purpose built student accommodation.

“Our ability to secure, fund and develop a pipeline of attractive sites provides excellent earnings visibility for our shareholders.”