Watkin Jones has sold three non-core private rented sector operational assets to L1 Capital.
The buildings will net the firm a total of £11m.
The portfolio comprises more than 117,000 sq ft with a total of 174 flats. Two of the properties are in Sheffield – the 78-flat Gateway and the 43-flat Impact (pictured). The third scheme, which has 53 flats, is the Wharf, in Droylsden, Greater Manchester.
Watkin Jones said the deal was its first with L1 and marked the exit on assets which were built by the group between 2006 and 2008.
Watkin Jones said it would use the cash to shore up its cash position and add to its land-buying firepower.
The transaction will crystallise a book loss on disposal, although this was reflected in the expected impairment charge for FY23 in the group’s July trading update.
Savills advised on the deal.
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