LONDON (ShareCast) - (Sharecast News) - Residential build-to-rent developer Watkin Jones reported the "continued" on-time delivery of developments despite the Covid-19 situation in an update on Monday, confirming that since its half-year results in May, it had completed and handed over 857 build-to-rent apartments across four developments in Reading, Stratford, Sutton and Wembley.
The AIM-traded firm said it had also delivered 2,071 purpose-built student accommodation (PBSA) beds across five developments in Bristol, Cranfield, Edinburgh, Leicester and Sheffield.

All remaining 2021 financial year developments, including one build-to-rent scheme for 184 apartments in Leicester and two PBSA schemes for 1,121 beds in Glasgow and Wembley, were on track for completion in September.

Demand was also said to be driving forward sales, with Watkin Jones reporting that it had forward sold 184 build-to-rent apartments in Leicester to Catella APAM for £31.7m, payable on completion of the development in the current financial year, as well as 216 build-to-rent apartments in Hove to L&G Investment Management for £76.5m, payable on a forward fund basis over the development period from 2021to 2023.

It also forward sold 133 co-living studio apartments in Exeter to Ropemaker Properties, as its first full co-living scheme, for £16.9m, payable on a forward-fund basis over the development period from 2021 to 2022, as well as 159 affordable homes in Crewe to Plus Dane, as its first affordable homes scheme, for £22.8m, subject to variation of planning conditions, payable over the development period from 2022 to 2025.

The rest of the 245-home site was for open market sale.

Finally, it had forward sold 23 affordable homes in Llay to Adra for £3.5m, with the remainder of the 51-home site for open market sale.

On the planning consents front, Watkin Jones said it had obtained planning since the half-year for a 551 apartment build-to-rent scheme in the centre of Birmingham, a 370-bed PBSA scheme in Swansea, and a 315 apartment build-to-rent and 335-bed PBSA mixed-use scheme in Bath.

Looking at its pipeline, the company had secured a site in central Nottingham and submitted planning for a 354-bed PBSA scheme.

It had also acquired a site in south London with the potential for 750 PBSA beds, subject to planning, and a site in east London with the potential for 390 PBSA beds, also subject to planning.

The firm's secured development pipeline, excluding 2021 financial year completions, now comprised 3,870 build-to-rent apartments and 6,750 PBSA beds, with a total estimated future development value of £1.7bn.

Its 'Fresh' accommodation management business was also continuing to expand, with the company having agreed to take over management of the Oldway Centre - a 556-bed PBSA property in Swansea - for the Midos Group.

Fresh is currently contracted to manage around 22,000 student beds and build-to-rent apartments.

"Since our interim results we have continued to make good progress across the business," said chief executive officer Richard Simpson.

"Our delivery teams have performed strongly, with the majority of our developments for delivery in the current financial year already completed.

"We have been active in acquiring high quality sites, securing planning and also forward selling to a broadening range of institutional investors, enhancing our development pipeline."

At 1123 BST, shares in Watkin Jones were up 2.99% at 246.67p.

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