WJ & Maslow Capital announce £102m PBSA scheme

Watkin Jones plc ("Watkin Jones" or the "Group"), the UK's leading developer and manager of residential property for rent, is pleased to announce that it has contractually exchanged on a further high-quality purpose-built student accommodation ("PBSA") development opportunity in Bristol into its Joint Venture ("JV") with Maslow Capital (the "Transaction").

The Transaction will have an estimated Gross Development Value ('GDV') of c.£102m upon completion of the development and will generate secured revenues of approximately £55m over the course of its three-year construction period. In addition, there is the potential to generate further revenue through the sale of the property once completed (the "Realisation Sale"). The Transaction is conditional on Gateway 2 approval which is expected during the first half of FY2026. The Transaction will deliver a cash inflow of c. £2m in FY26.

The Group will be responsible for the delivery of the scheme through to completion, as well as its ongoing management by Fresh, the Group's accommodation management business. Completion is targeted in time for the start of the 2028/29 academic year. The Group will also benefit from additional revenue proportionate to any returns in excess of agreed hurdle rates delivered by a Realisation Sale. Any such sale is not expected to occur before Q4 2028.

The development, situated in a prime location for Bristol's universities, on Malago Road in Bedminster, will comprise 484 beds across three blocks.

The Transaction represents the second scheme in the JV between Watkin Jones and Maslow Capital, following their earlier collaboration on a 784-bed PBSA scheme, The Ard, in Glasgow in September 2025. The partnership reflects the Group's ability to work with institutional capital to deliver standout, sustainable schemes in markets where demand continues to outpace supply.

Alex Pease, Chief Executive Officer of Watkin Jones, commented:

"This transaction reflects our strategy to deepen relationships with institutional capital and deliver sustainable growth in the UK's most attractive student markets. Bristol's strong fundamentals and connectivity make it a key location, and this scheme will reinforce our leadership in providing best-in-class accommodation that meets evolving student expectations while supporting our long-term value creation objectives."

Related party transaction

The JV, which is owned 95% by Maslow Capital and 5% by the Group, has three statutory directors, being Alex Pease, the Group's CEO, Simon Jones, the Group's CFO, and George Dyer, Group Investment Director. Accordingly, the JV is a related party of Group, and the entry into the Transaction (including the associated development, financing and management agreements between the Group and the JV Entity), constitutes a related party transaction pursuant to Rule 13 of the AIM Rules for Companies.

The Independent Directors, being all directors of the Group other than Alex Pease and Simon Jones, having consulted with the Company's nominated adviser, Peel Hunt, consider the entry into the Transaction is fair and reasonable insofar as the Company's shareholders are concerned.