TIDMWJG
RNS Number : 2627B
Watkin Jones plc
03 April 2017
For immediate release 3 April 2017
Watkin Jones plc
('Watkin Jones' or the 'Group')
Pre-Close Trading Statement
Watkin Jones plc (AIM:WJG), a leading UK developer and
constructor of multi occupancy property assets, with a focus on the
student accommodation sector, announces its pre-close trading
statement for the half year ended 31 March 2017.
The Board is pleased to report a successful first six months of
the financial year with trading in line with its expectations.
In the year to date, five student accommodation developments in
Bournemouth, Ipswich, Belfast, Cardiff and London, representing
2,347 beds in total, were sold with a gross development value of
GBP192 million. All the developments planned to be completed by
September 2017 and five of those planned to be completed by
September 2018 have been forward sold. Watkin Jones has a further
six developments totalling over 1,705 beds under offer and in legal
negotiations which, when concluded, would see all the developments
planned to be completed by September 2018 forward sold. In total,
16 developments, representing 5,679 beds, for delivery before
September 2019 have now been sold.
The Group has 11,098 targeted beds in its secured pipeline, with
9,390 of these having planning consent. Planning applications have
been submitted in respect of the remainder.
Fresh Student Living now have 12,117 beds under management
across 43 schemes and are contracted to increase this to 16,526
beds under management across 55 schemes from the start of the
2017/18 academic year.
The Group is making good progress with its drive into the
Private Rented Sector ('PRS') having completed its first PRS scheme
in Leeds of 322 units and has secured a 132 unit development site
in Sutton. The Group is also working on a number of planning
applications and other site acquisition opportunities.
The Group's progress in delivering the current development
pipeline is encouraging and the Board remains confident in the
outlook for the full year.
Mark Watkin Jones, Chief Executive Officer of Watkin Jones plc,
said: "I am pleased with the Group's performance over the past six
months, which continues to reinforce the attractiveness of our
end-to-end business model to institutional investors. The market
for purpose built student accommodation in the UK continues to grow
and demand for our product remains strong.
"Our entry into PRS has been successful with the completion of
our first scheme in Leeds and going forward we plan to grow our PRS
business sustainably. Our development pipeline provides excellent
visibility of earnings and cashflow and we are optimistic for the
continued growth of Watkin Jones."
The Group will be announcing its Interim Results on Thursday, 1
June 2017. An analyst briefing will be held at 09.30hrs at the
offices of Buchanan, 107 Cheapside, London EC2V 6DN.
- 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 / 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 / Steph Watson
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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