Watkin Jones has forward-sold the 819-bed development in Dalby Avenue, Bedminster, to US private equity firm Kohlberg Kravis Roberts (KKR).
Watkin Jones gets an initial £25m plus further amounts payable over the course of the development. Watkin Jones started construction last year after acquiring the consented project from Deeley Freed. The nine-storey block is due for completion in August 2024.
This is Watkin Jones’ second deal with KKR.
Upon completion, the development will be fully leased to the University of Bristol on a long-term basis.
Watkin Jones chief investment officer Alex Pease said: “The sale is further evidence of the attractive investment and operational fundamentals of both PBSA as a sector and Bristol as a city and a good sign of investment markets re-opening.
“Watkin Jones has a strong track record of developing PBSA schemes in Bristol as rising demand continues, including work recently completed at Wilder Street and Unity Street last year, in addition to work currently underway on a PBSA site on Gas Lane.”
KKR managing director Seb d’Avanzo, head of the firm’s real estate acquisitions in Europe, said: “Watkin Jones is a leading developer and manager in the sector, and we are pleased to undertake another attractive venture with Alex and his team.”
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