Watkin Jones sells pair of Sheffield PRS blocks

L1 Property has acquired the Gateway and Impact buildings, along with a third asset in Greater Manchester, giving the rental specialist an £11m cash boost.

The portfolio, described by the vendor as “non-core”, comprises more than 117,000 sq ft with a total of 174 units: 78 units at Gateway and 43 at Impact, with 53 at The Wharf in Droylsden, Tameside.

L1 Property is the real estate funds management arm of L1 Capital.

This is Watkin Jones’ first transaction with L1 Property and marks an exit from developments constructed by the business between 2006 and 2008 and operated by it ever since.

George Dyer, group investment director at Watkin Jones said: “We are pleased to undertake our first transaction with L1 Property.

“The sale of these assets represents the culmination of our business plan and will enable us to recycle the proceeds into further land opportunities as we look to grow our pipeline in the coming months.”

David Lamm, chief executive of L1 Property, said: “We are enthusiastic about this transaction with Watkin Jones to acquire three landmark buildings in Sheffield and Greater Manchester, two cities we recognise for their dynamic economies and promising long-term prospects.”

Thomas Collins, chief operating officer of L1 Property, added: “This transaction aligns perfectly with our vision to enhance the living experience, add significant value through asset management, and continue to develop our fully integrated property management platform.”

Watkin Jones was advised in the transaction by Savills and Mishcon de Reya.

After repayment of related debt financing and disposal costs, the net cash inflow to the business will be an initial £9m in Q4 of financial year 2023, and a further £2m deferred payment in H1 of the following financial year.

The group said this will augment its FY23 year-end cash position, as well as supporting the business’ ability to be proactive in the land market.