Build to Rent continues to grow in significance for the Watkins Jones Group who are increasingly expanding its operations into the Build to Rent sector. Although there were no new forward sales in the period to March 2020, the Group secured two new significant sites – both are subject to planning. The first site in Birmingham is for 565 Build to Rent apartments and the second site in Bath is for 323 apartments – totalling 888 apartments.
Including these two new sites, Watkin Jones’ forward sold and secured Build to Rent pipeline is approximately 2,660 apartments across ten sites. 1,012 apartments across five sites have been forward sold for delivery over the fiscal year period 2020 to 2022, and a further site for 184 apartments has planning.
Build to Rent revenue
Build to Rent has continued to grow significantly for the Group, with revenue rising to £36.5m in the six months to 31 March 2020. The gross profit for the period was £6m with a gross margin of 16.3%.
The revenues reflected further construction progress at the already forward sold developments in Bournemouth – for 159 Build to Rent apartments to be delivered in 2020, and in Reading, Wembley and Sutton for 782 apartments to be delivered in 2021.
“The half year performance was strong and continued the momentum towards our multi-year growth strategy which we set out in November 2019. Our businesses have all performed well in the period and in-line with expectations.
“The Board believes that the Group is now well-positioned for future growth and to take advantage of economic opportunities that may arise from the current unprecedented situation.”Richard Simpson, Chief Executive Officer, Watkin Jones