The portfolio comprises over 117,000 sq ft with a total of 174 units, featuring 78 units at Gateway and 43 at Impact, both located in Sheffield, and 53 at The Wharf, in Droylsden, Greater Manchester.

The deal is the first between the two companies and marks the exit on assets which were constructed by Watkin Jones between 2006 and 2008 and have been operated by the group since.

Savills and Mishcon de Reya advised Watkin Jones in the transaction.

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George Dyer, group investment director at Watkin Jones, said: “We are pleased to undertake our first transaction with L1 Property.

“The sale of these assets represents the culmination of our business plan and will enable us to recycle the proceeds into further land opportunities as we look to grow our pipeline in the coming months.”

Thomas Collins, COO at  L1 Property, added : “This transaction aligns perfectly with our vision to enhance the living experience, add significant value through asset management, and continue to develop our fully integrated property management platform.