LONDON, UK: Watkin Jones, a leading UK developer and manager of residential and student accommodation, announced today that it has completed the sale of its three non-core Private Rented Sector (PRS) operational assets, located in Sheffield and Manchester, to L1 Capital, an Australian-based global investment manager.

The sale will generate an initial net cash inflow of £9 million in the fourth quarter of the financial year 2023, and a further £2 million deferred payment in the first half of the financial year 2024, after repaying the related debt financing and disposal costs. The cash proceeds will boost the Group’s year-end cash position, as well as supporting its ability to be proactive in the land market.

The transaction will also result in a book loss on disposal, which is already reflected in the expected impairment charge for the financial year 2023, as highlighted in the Group’s trading update of 19 July 2023.

The three PRS assets that were sold are:

• The Forge, Sheffield: A 283-bed PRS scheme completed in September 2019.
• The Gatehouse, Manchester: A 58-bed PRS scheme completed in September 2019.
• The Pictureworks, Sheffield: A 206-bed PRS scheme completed in September 2020.

Richard Simpson, Chief Executive Officer of Watkin Jones, said: “We are pleased to have concluded this sale of our non-core PRS operational assets to L1 Capital. This transaction demonstrates our ability to deliver value from our PRS portfolio and generate cash to reinvest in our core development activities. We remain focused on delivering high-quality residential and student accommodation schemes across the UK.”