Watkin Jones, the UK's leading developer and manager of residential for rent homes, is pleased to announce the forward sale of an Affordable scheme in Lewisham to CBRE UK Affordable Housing Fund (AHF), a fund managed by CBRE Investment Management.
The scheme, (Block 3) provides 43 affordable homes including 17 one-bed apartments, 22 two-bed apartments and 4 three-bed apartments. Of these, 27 will be affordable rental apartments and 16 social rental apartments and tenants will be moving in imminently. The scheme, which forms part of a wider development Watkin Jones is delivering at Conington Road, offers further much needed affordable homes in the local area, amidst the continued shortages in the London rental market.
Located next to Lewisham railway station, the scheme provides residents easy access to a host of shops, restaurants and other facilities as well as to DLR and rail services for easy travel into central London, supporting sustainable travel efforts. Residents will be encouraged to cycle and can enjoy access to cycle storage on site. The scheme has achieved Home Quality Mark level 3 and incorporates Air Source Heat Pumps to support environmental performance and future proofing.
Blocks 1 & 2, which total 322 BTR units and are located adjacent to Block 3, were sold to Legal and General in October 2021 and will be completed in 2024.
Alex Pease, Chief Investment Officer of Watkin Jones, said: “We are delighted to partner with CBRE UK Affordable Housing Fund to offer sustainable affordable homes in Lewisham. Offering 43 households in a recently regenerated urban community with easy access to central London, this will be a thriving place to live. These affordable apartments will be part of a sustainable and flourishing community and will support the continued need for affordable housing across the capital.
“We have enjoyed working with CBRE UK Affordable Housing Fund and our thanks go to everyone involved in the project.”
Andrew Davey, Fund Manager for AHF at CBRE Investment Management, said: “This scheme is an excellent addition to our affordable housing portfolio aligning with the Fund’s social impact objectives. It is a highly affordable scheme with units rented between 35%-45% of open market rents and is located in an area where there is a high social need. With it being a high-quality new build, the environmental credentials of the build and energy efficiency of the units, were also key factors for this acquisition.
“This is the first time we have partnered with Watkin Jones and hope that there are future opportunities that we can work with them again.”
AHF invests in social and affordable rented housing and affordable-ownership properties delivering measurable social outcomes. It was one of the first UK unlisted funds to bring institutional client capital into affordable housing to deliver social impact.
Watkin Jones was advised by Addleshaw Goddard and CBRE AHF was advised by Penningtons.
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For further information:
Watkin Jones plc
Via Buchanan Communications
Henry Harrison-Topham / Jamie Hooper
Tel: +44 (0) 20 7466 5000
NOTES TO EDITORS
About Watkin Jones
Watkin Jones is the UK's leading developer and manager of residential for rent, with a focus on the Build to Rent and student accommodation sectors. The Group has strong relationships with institutional investors, and a reputation for successful, on-time-delivery of high-quality developments. Since 1999, Watkin Jones has delivered 41,000 student beds across 123 sites, making it a key player and leader in the UK purpose-built student accommodation market. In addition, the Fresh Property Group, the Group's specialist accommodation management company, manages nearly 18,000 student beds and Build to Rent apartments on behalf of its institutional clients. Watkin Jones has also been responsible for over 80 residential developments, ranging from starter homes to executive housing and apartments. The Group is increasingly expanding its operations into the Build to Rent sector.
The Group's competitive advantage lies in its experienced management team and business model, which enables it to offer an end-to-end solution for investors, delivered entirely in-house with minimal reliance on third parties, across the entire life cycle of an asset. Watkin Jones was admitted to trading on AIM in March 2016 with the ticker WJG.L. For additional information please visit www.watkinjonesplc.com
About CBRE Investment Management
CBRE Investment Management is a leading global real assets investment management firm with $149.3 billion in assets under management* as of December 31, 2022, operating in more than 30 offices and 20 countries around the world. Through its investor-operator culture, the firm seeks to deliver sustainable investment solutions across real assets categories, geographies, risk profiles and execution formats so that its clients, people and communities thrive.
CBRE Investment Management is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBRE), the world’s largest commercial real estate services and investment firm (based on 2022 revenue). CBRE has approximately 115,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE Investment Management harnesses CBRE’s data and market insights, investment sourcing and other resources for the benefit of its clients. For more information, please visit www.cbreim.com.
*Assets under management (AUM) refers to the fair market value of real assets-related investments with respect to which CBRE Investment Management provides, on a global basis, oversight, investment management services and other advice and which generally consist of investments in real assets; equity in funds and joint ventures; securities portfolios; operating companies and real assets-related loans. This AUM is intended principally to reflect the extent of CBRE Investment Management’s presence in the global real assets market, and its calculation of AUM may differ from the calculations of other asset managers and from its calculation of regulatory assets under management for purposes of certain regulatory filings.
CBRE UK Affordable Housing Fund (the “Fund”) is a UK fund established under the laws of England and Wales, domiciled in the UK, and falls under the supervision of the Financial Conduct Authority (FCA).
Target returns are derived from analysis based upon both quantitative and qualitative factors, including market experience and historical and expected averages related to the risk/return profile and criteria for investments (i.e. the Investment Targets) of the Fund. The Investment Targets are based on the expected cumulative internal rates of return generated by the expected investments across a multi-year period. After synthesizing this information, the respective general partner has arrived at what it believes are realistic target returns for respective the Fund. The Fund’s target returns are presented to establish a benchmark for future evaluation of performance, to provide a measure to assist in assessing the anticipated risk and reward characteristics of an investment in the Fund and to facilitate comparisons with other investments. Any target data or other forecasts contained herein are based upon subjective estimates and assumptions about circumstances and events that may not yet have taken place and may never do so. If any of the assumptions used do not prove to be true, results may vary substantially. Actual individual investment performance may not achieve the Investment Targets upon realization/liquidation as initially expected, which may have a material effect on overall realized portfolio performance over the life of the Fund and the ability to achieve targets. The ability to achieve a given Investment Target may be affected by numerous factors, including, but not limited to, investment values, cash flow, environmental and structural factors, ratings, and market conditions. Many factors affect performance, including changes in market conditions and interest rates and changes in response to other economic, political, or financial developments. The target returns are pre-tax and represent possible returns that may be achieved but are in no way guaranteed. The target returns are subject to change at any time and are current as of the date hereof only. In any given year, there may be significant variation from these targets, and there is no guarantee that the Fund will be able to achieve the Investment Targets in the long term. The Investment Targets are being shown for information purposes only and should not be relied upon to make predictions of actual future performance. Targets are objectives and should not be construed as providing any assurance as to the results that may be realized by the Fund in the future.
Assets under Management (AUM) refers to the fair market value of real estate-related assets with respect to which CBRE Investment Management provides, on a global basis, oversight, investment management services and other advice, and which generally consist of investments in real estate; equity in funds and joint ventures; securities portfolios; operating companies and real estate related loans. AUM is intended principally to reflect the extent of CBRE Investment Management’s presence in the global real estate market, and its calculation of AUM may differ from the calculations of other asset managers.
This information contains forward-looking statements that are inherently uncertain and subject to change. There can be no assurance that any initiatives, goals, targets, commitments, intentions, projections or other forward-looking statements herein will ultimately be achieved or that they will be successful. Actual results may vary. Past performance is not a guarantee of future performance. This information reflects the views and intentions of CBRE Investment Management as of 2023 and is not current as of any later date. CBRE Investment Management reserves the right to change any such views or intentions and will have no obligation to provide notice of any such change. It should not be assumed that the successful implementation of any ESG initiatives will have any positive impact on financial performance of any fund or account sponsored by CBRE Investment Management.