Planning consent granted for Duncan House

RNS Number : 5647C

Watkin Jones plc

29 June 2016

 

For immediate release

29 June 2016

Watkin Jones plc

('Watkin Jones' or the 'Group')

Planning consent granted for Duncan House, Stratford

Watkin Jones plc (AIM:WJG), a leading UK developer and constructor of multi occupancy property assets, with a focus on the student accommodation sector, is pleased to announce that the Group has received planning consent to progress with the redevelopment of Duncan House in Stratford.

The proposed redevelopment of Duncan House, which is located in Stratford High Street E15, consists of 511 beds (420 beds and 91 studios), 44 residential units and 30,000 square feet of academic space. The total gross development value of the scheme is around £100 million.  Watkin Jones is in advanced negotiations with University of London ("UoL"), one of the world's most prestigious academic institutions and their funding partners, to forward sell the student part of the Duncan House scheme as per the Group's business model.  The residential units will be sold in a separate transaction by Watkin Jones.  The development is anticipated to be completed in 2019.

Mark Watkin Jones, Chief Executive Officer of Watkin Jones plc, said:  "We are delighted to have secured planning consent for this latest scheme in our pipeline which builds our visibility around our business model.  We expect to be on site towards the end of 2016 and complete the scheme in 2019."

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For further information:

Watkin Jones plc
Mark Watkin Jones, Chief Executive Officer	Tel: [phone]
Philip Byrom, Chief Financial Officer	www.watkinjonesplc.com
Zeus Capital Limited (Nominated Adviser & Joint Broker)
Corporate Finance
Dan Bate / Nick Cowles / Jamie Peel		Tel: [phone]
Corporate Broking		Tel: [phone]
Dominic King / Benjamin Robertson		www.zeuscapital.co.uk
Peel Hunt LLP (Joint Broker)		Tel: [phone]
Mike Bell / Matthew Brooke-Hitching		www.peelhunt.com

Media enquiries:

Buchanan
Henry Harrison-Topham / Richard Oldworth / Stephanie Watson	Tel: [phone]
[e-mail]	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 28,000 student beds across 88 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.

 

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