Forward Sale of PBSA Development in Bristol

Watkin Jones is pleased to announce the forward sale of a new 260 bed PBSA ('Purpose Built Student Accommodation') development at Gas Lane in Bristol to Hines, acquiring on behalf of the Hines European Property Partners Fund ('HEPP').

The contribution from this sale is reflected in the Group's current financial guidance, with an overall scheme margin expected to be in line with current target returns. The transaction will generate day one cash receipts of c. £11 million, net of repayment of the associated debt of c.£5 million.

As part of Bristol Temple Quarter, one of the UK's largest urban regeneration zones, it will transform the current brownfield site at Gas Lane into a new student community, helping to support the new University of Bristol Temple Quarter campus. The scheme is targeted to complete in time for the start of the 2025/26 academic year.

Alex Pease, CEO of Watkin Jones, commented: "We are delighted to announce the forward sale of this student accommodation development. This is our first transaction with Hines and we look forward to working with such a highly-regarded partner going forward.

"This transaction gives us confidence that sentiment in the institutional market continues to recover. As the market shows further signs of improvement, we are well-positioned to capitalize on this given our position in PBSA and Build to Rent, two of the most attractive asset classes in real estate."