Watkin Jones sells 819-bed PBSA scheme to KKR

Watkin Jones has announced that the group has sold the 819-bed student housing asset to KKR, a global investment firm, in a forward funding deal. The global investment firm has agreed to buy the purpose-built student housing (PBSA) scheme in Dalby Avenue located in Bedminster, Bristol. As part of the deal, KKR is expected to pay developer Watkin Jones over the course of the development, which is due for completion in August 2024, and includes an initial net cash receipt for Watkin Jones of £25m (€28.3m). The asset will be leased to The University of Bristol on a long-term basis once completed. The development will deliver a mix of five to 12 bed cluster flats together with c.15,000 sq.ft. of internal amenity space and considerable external amenity space including a private terrace, courtyard, and gardens. The site is conveniently located close to university campuses, Bedminster train station and within walking distance to Bristol’s city centre. Watkin Jones stated that the creation of this new major PBSA development in Bedminster is “important in helping the city to address the on-going and increasing demand for student accommodation”. The PBSA scheme is located in one of the five key sites identified in Bristol City Council’s Bedminster Green Framework as a priority for redevelopment. The scheme is sustainably designed, and is targeting BREEAM ‘excellent’ rating. The site features an outdoor communal amenity space including a courtyard, high quality public realm and access to the newly restored Malago River corridor. Watkin Jones was advised by Cushman and Wakefield and Addleshaw Goddard LLP. Meanwhile, KKR was advised by Bryan Cave Leighton Paisner LLP. Alex Pease, chief investment officer at Watkin Jones, said: “We are delighted to have secured our second deal with KKR, and would like to thank them for their efforts and partnership approach in reaching this agreement. This is an exciting opportunity to develop a key area of regeneration in the Bedminster area of Bristol for the ever-growing student needs in the city. “The sale is further evidence of the attractive investment and operational fundamentals of both PBSA as a sector and Bristol as a city and a good sign of investment markets reopening. Watkin Jones has a strong track record of developing PBSA schemes in Bristol as rising demand continues, including work recently completed at Wilder Street and Unity Street last year, in addition to work currently underway on a PBSA site on Gas Lane.” Seb d’Avanzo, managing director and head of Real Estate Acquisitions for KKR in Europe, added: “We’re delighted to be investing in this well-located PBSA scheme which will deliver exceptional-quality accommodation for one of the UK’s top universities. “Watkin Jones is a leading developer and manager in the sector, and we are pleased to undertake another attractive venture with Alex and his team. The student housing market has compelling and resilient fundamentals and this property benefits from a long-term lease, making it a good fit for our Core Plus Real Estate strategy and our growing ambitions in the student housing sector.”

Watkin Jones sells 819-bed PBSA scheme to KKR

Watkin Jones was advised by Cushman and Wakefield and Addleshaw Goddard LLP

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