Shares in Watkin Jones plc (LON:WJG) rose this morning after the property developer hailed the continuing “strong” demand for student accommodation.
The group said the first six months of its financial year have been “successful” and trading had been in line with expectations with a number of properties sold.
In the first half, Watkin Jones sold five student accommodation developments in Bournemouth, Ipswich, Belfast, Cardiff and London for £192mln.
It added all the developments planned to be completed by this September (2017) and five of those scheduled for completion by next September (2018) have been forward sold.
The AIM-listed group said six more developments are under offer and in “legal negotiations” which, when concluded, would see all of the developments planned to be completed by September by 2018 forward sold.
In total, 16 developments for delivery before September 2019 have now been sold.
A further 11,098 beds are in its secured pipeline, with planning consent approved for 9,390 of those.
Watkin Jones also made decent progress with its drive into the private rented sector (PRS) having completed its first PRS scheme in Leeds and secured another site in Sutton.
“The market for purpose built student accommodation in the UK continues to grow and demand for our product remains strong,” said chief executive Mark Watkin Jones.
“Our entry into PRS has been successful with the completion of our first scheme in Leeds and going forward we plan to grow our PRS business sustainably. Our development pipeline provides excellent visibility of earnings and cashflow and we are optimistic for the continued growth of Watkin Jones.”
Interim results for the six months ended 31 March 2017 are due on 1 June.
Shares rose 3% to 154p on Monday.