Watkin Jones and DWS have agreed a c.£100 million forward funding deal to deliver 316 new build-to-rent (BTR) homes on the Lower Bristol Road, Bath.
The scheme will create studios, one, two and three-bed homes across two BTR buildings, 95 of which will be classed as affordable and offer significantly reduced rents. Completion is expected in 2025.
This is Watkin Jones and DWS’ second transaction, following the practical completion of almost 700 PBSA homes at Kelaty House, now Pavilion Court, in Wembley.
Alex Pease, Chief Investment Officer of Watkin Jones, said: “This agreement builds on our already successful relationship with DWS and will bring long term value to Bath by creating fantastic homes for people to live in. Constrained supply of new homes to rent is a growing challenge for renters, and more investment in creating new rental housing where people can enjoy living and working in Bath is urgently needed to meet demand.”
Hugo Vere, Lead Portfolio Manager for the real estate business at DWS, based out of London said, “We look forward to continuing our great partnership with Watkin Jones. Upon completion, Bath Junction will complement the population demographic of the area delivering an attractive, affordable BTR housing scheme to this historic city. As a dominant living sector investor, DWS’ presence across UK and Ireland expands to almost 7,500 beds with this latest transaction.”
He continued: “This marks the first acquisition for a new Pan-European c. €1bn mandate. We will continue to target high quality living sector schemes in key regional cities across Europe as we build out the portfolio.”
The neighbouring PBSA site is also being developed by Watkin Jones and is being forward funded by EQT Exeter as part of a portfolio deal announced in May.