Watkin Jones forward-sells Wembley student accommodation scheme

Multi-occupancy residential property developer Watkin Jones has completed the forward sale of a purpose-built student accommodation development in Wembley to the real estate investment business of DWS, it announced on Monday.

The AIM-traded firm said the consideration payable to Watkin Jones over the course of the development would be around £90m, net of all client funding and acquisition costs.

It said the scheme was expected to deliver a margin in line with target returns, and was scheduled for delivery in time for the start of the 2021-2022 academic year.

The completed scheme would be managed by Fresh Student Living, the group's purpose-built student accommodation asset manager.

Watkin Jones said the Wembley scheme had a planning consent for 599 high-quality purpose-designed student beds, with associated amenity and management space.

It also included a retail offering, and a “substantial” landscaped external communal area.

The purpose-built student accommodation scheme formed part of a wider mixed-use site, which also included the previously-announced 300 build-to-rent apartments and associated underground car park which Watkin Jones was contracted to develop for Kelaty Propco - a joint venture ultimately owned by Singapore-incorporated Lum Chang Holdings and Sin Heng Chan.

It said the development site formed part of the continued Wembley regeneration story, and showcased the company’s expertise in assembling, structuring, constructing, funding and operating complex and high profile urban centre projects.

“We are delighted to partner with DWS in the forward sale of our Wembley purpose-built student accommodation scheme,” said Watkin Jones chief executive officer Richard Simpson.

“The Wembley regeneration story is remarkable and it is firmly established as a destination of choice by students for their accommodation.”

Simpson said it was “significant” that a global institution had invested in its first student accommodation scheme in the UK by partnering with Watkin Jones for both the development and then the management of the asset.

“Our track record in developing into the robust UK PBSA sector is well proven as this transaction highlights.

“We look forward to deepening our development pipeline and leveraging our expertise further.”

Mike Hill, head of real estate transactions for the UK and Ireland at DWS, confirmed the purchase of Kelaty House was the company’s first UK purpose-built student accommodation acquisition, and as such represented a “significant step forward” in its strategy to invest into the beds sector in the UK and Ireland.

“Kelaty House is an ideal first acquisition for DWS,” Hill said.

“It offers scale and is located in the regeneration area of Wembley, which is fast becoming a vibrant hub for students and will benefit from the strength of London's student housing market.”