Watkin Jones finalises sale of three non-core assets

17th Aug 2023 12:04

(Sharecast News) - Property developer Watkin Jones said on Thursday that it had successfully finalised the sale of its three non-core private rented sector (PRS) assets in Sheffield and Manchester.

The AIM-traded firm said the assets were acquired by investment manager L1 Capital.

Following completion, and after taking into consideration the repayment of the related debt financing and the associated disposal costs, Watkin Jones said it expected a net cash inflow.

The inflow was expected to be in two phases - an immediate £9m in the fourth quarter of the 2023 financial year, followed by a deferred payment of £2m in the first half of the 2024 period.

Watkin Jones said the sale would bolster its cash reserves, and enhance its flexibility and agility in the land market.

"The transaction will crystallise a book loss on disposal, which is fully reflected in the expected impairment charge for 2023, highlighted in the group's trading update of 19 July," the board said in its statement.

At 1530 BST, shares in Watkin Jones were down 0.73% at 47.6p.

Reporting by Josh White for Sharecast.com.