Forward sale of portfolio of developments

Watkin Jones plc

('Watkin Jones' or the 'Group')

Forward sale of portfolio of developments

Watkin Jones plc (AIM:WJG), a leading UK developer and constructor of multi occupancy property assets, with a focus on the student accommodation and build to rent sectors, is pleased to announce that the Group has completed the forward sale of a portfolio of four purpose-built student accommodation ('PBSA') development schemes to a joint venture between KKR and Round Hill Capital ('Round Hill') (the 'JV').  The Group has also exchanged an option agreement with the JV, conditional on full planning consent, for a fifth PBSA scheme in Bristol (the 'Portfolio').

The consideration payable to Watkin Jones over the course of the four forward sold developments is circa £180 million, net of all client funding and acquisition costs.  This will be payable over the period September 2018 to September 2020.  Additional consideration in respect of the Bristol scheme will be agreed once the option is exercised.

The JV invests in student accommodation through multiple strategies including acquiring existing assets, developing new PBSA, forward-funding and repositioning assets across select university towns and cities in the UK, Spain, Netherlands and wider Europe.  This is the first student housing transaction for KKR and Round Hill through their JV in the United Kingdom.

The portfolio consists of 2,163 student accommodation beds and associated commercial use classes.  Four of the schemes have planning consent granted with Bristol in the planning process.  Further information on the five developments is detailed in the table below:

Mark Watkin Jones, Chief Executive Officer of Watkin Jones plc, said: "We are delighted to announce that we have successfully completed the sale of a portfolio of four student accommodation developments and exchanged an option agreement, conditional on full planning consent, to sell a fifth development in Bristol.

"Watkin Jones has an established reputation as a leading developer of high quality purpose-built student accommodation and it is this reputation that has led us to work with KKR and Round Hill in their first joint investment in the UK student housing market.  This is further validation of the ongoing opportunity for Watkin Jones in the sector and the initial consideration of £180 million, for the four forward sold sites, helps further build the Group's revenue visibility for the coming financial years."

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Notes to Editors

Watkin Jones is a leading UK developer and constructor of multi occupancy property assets, with a focus on the student accommodation and build to rent 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 more than 34,500 student beds across 107 sites.  In addition, Fresh Property Group, the Group's specialist accommodation management company, manages more than 16,000 student beds on behalf of its institutional clients.  Watkin Jones has also been responsible for over 50 residential developments, ranging from starter homes to executive housing and apartments.  The Group is now expanding its development and management operations into the build to rent sector.

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.

Watkin Jones was admitted to trading on AIM in March 2016 with the ticker WJG.L.  For additional information please visit: www.watkinjonesplc.com.