Developer completes forward sale of Coventry scheme as part of £180m deal

Developer Watkin Jones has completed the forward sale of a portfolio of four purpose-built student accommodation development schemes, including one in Coventry, as part of a £180m deal.

The Coventry development on Whitefriars Lane comprises 778 beds and is due for delivery in September 2020. The other sites are based in London, Glasgow and Bristol.

Four of the schemes have planning consent granted with Bristol in the planning process.

The sites have been bought by a joint venture between KKR and Round Hill Capital, which invests in student accommodation through multiple strategies including acquiring existing assets, developing new PBSA, forward-funding and repositioning assets across select university towns and cities in the UK, Spain, Netherlands and wider Europe.

This is the first student housing transaction for KKR and Round Hill through their JV in the UK.

Mark Watkin Jones, chief executive of Watkin Jones, said: “We are delighted to announce that we have successfully completed the sale of a portfolio of four student accommodation developments and exchanged an option agreement, conditional on full planning consent, to sell a fifth development in Bristol.

“Watkin Jones has an established reputation as a leading developer of high quality purpose-built student accommodation and it is this reputation that has led us to work with KKR and Round Hill in their first joint investment in the UK student housing market.  This is further validation of the ongoing opportunity for Watkin Jones in the sector and the initial consideration of £180m, for the four forward sold sites, helps further build the group’s revenue visibility for the coming financial years.”