Watkin Jones has plans to sell a new 397-bed purpose-built student accommodation (PBSA) development together with workspace and commercial units in Stratford, East London, to the Housing Growth Partnership (HGP).
The transaction is the firm’s first with HGP, a social impact investor and part of Lloyds Banking firm. It is being delivered via an innovative structure which is expected to generate receipts for Watkin Jones over the course of the three-year development of approximately £96 million (€114 million/$123 million), at margins in line with the firm’s stated targets, with the potential to participate further from future value generated by the scheme.
In order to effect this structure, a newly created joint venture, Watkin Jones (Grove Crescent) Holding Ltd. has been established, which is owned 75 percent by HGP and 25 percent by the firm. Under this arrangement, the firm will be responsible for the delivery of the scheme through to completion as well as its
