LONDON: British residential developer Watkin Jones Group has agreed to sell a newly developed, 784-bed student accommodation scheme in Glasgow to a joint venture predominantly owned by Maslow Capital, the company announced on Tuesday.
The transaction, which values the project known as “The Ard” at a projected £182 million upon completion, underscores a strategic move by Watkin Jones to secure funding partnerships amid a volatile UK property market.
Under the deal, the joint venture entity is 95% owned by Maslow Capital and 5% by Watkin Jones. The developer will receive secured revenues of approximately £115 million during the three-year construction period and an initial net cash receipt of around £16 million.
“This transaction represents a significant further step for the Group as we seek to diversify our business model and create innovative development funding structures,” said Alex Pease, Chief Executive Officer of Watkin Jones.
The Group will remain responsible for building the property, targeted for the 2028/29 academic year, and its ongoing management through its Fresh accommodation business. Watkin Jones could also generate additional revenue from a future sale of the completed property, expected no earlier than the fourth quarter of 2028.
The company stated that the deal, alongside strong operational performance, positions it to meet its financial expectations for the 2025 fiscal year. The directors independent of the joint venture have deemed the related-party transaction fair and reasonable for shareholders.