The 784-bed ‘Ard’ scheme, located in Glasgow, will generate secured revenues of £115m over the course of its three-year construction period.

The JV entity is 95% owned by Maslow Capital with Watkin Jones owning the rest.

Under the structure, Watkin Jones will be responsible for delivery of the scheme through to its completion as well as its ongoing management by Fresh. Completion is being targeted in time for the 2028/29 academic year.

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The transaction will deliver an initial net cash receipt of around £16m, as well as contributing to Watkin Jones’s revenue and profitability in FY2025. Further income will be phased over the course of the construction process.

The group will also benefit from any future realisation sale, but this is not expected to occur before Q4 2028.

“This transaction represents a significant further step for the Group as we seek to diversify our business model and create innovative development funding structures,” said Alex Pease, CEO at Watkin Jones.

“Maslow Capital is an excellent partner for Watkin Jones, and their entry into a joint venture with the group is a great endorsement of our successful track record and extensive experience in residential development and construction.”