Acquires student accommodation property in Bath

RNS Number : 3879E

Empiric Student Property PLC

18 July 2016

 

18 July 2016

Empiric Student Property plc

("Empiric" or the "Company" or, together with its subsidiaries, the "Group")

Empiric acquires student accommodation property in Bath: 2 Oolite Road

The Board of Empiric Student Property plc (ticker: ESP), the owner and operator of premium student accommodation across the UK, is pleased to announce that the Group has acquired the freehold of a 31 bed student accommodation property in Bath for £2.6 million (excluding costs).

2 Oolite Road is a newly constructed student accommodation asset that was completed in May 2016 for the 2016/17 academic year.  The property comprises 31 beds in a mix of four, five and six bed en-suite apartments and is located in a popular residential area on the university side of Bath city centre, with local bus routes that provide easy access to the city and the University of Bath.

The property has been acquired from IESIS Limited, an established local developer and operator of purpose-built student accommodation in Bath and Bristol, which is currently developing the 1-3 James Street West in Bath on behalf of Empiric.  Hello Student® will be responsible for managing the Oolite Road scheme.

The Group has also entered into a nomination agreement with the University of Bath (the "Nomination Agreement") in respect of the property.  The duration of the Nomination Agreement is for five years from commencement in September 2016 over which time the beds will be directly let at current market rates to students provided by the University of Bath, on the same terms as the nomination agreement in place for the Group's four other assets in Bath.

Paul Hadaway, Chief Executive of Empiric Student Property plc, commented:

"We are very pleased to have acquired our fifth student accommodation property in Bath.  At the start of the 2016/17 academic year, we will have a total of 385 beds in operation in Bath, all of which are subject to nomination agreements with the University of Bath. As a UNESCO World Heritage city, there are limited opportunities for suitable development sites in Bath, which has two key universities with increasing student numbers and applications. Further, the provision of this purpose-built accommodation ensures that the existing limited housing stock in the city is not under additional pressure for student accommodation. This acquisition is in line with Empiric's investment criteria and returns profile."

For further information on the Company, please contact:

Empiric Student Property plc	(via Newgate below)
Paul Hadaway (Chief Executive)
Tim Attlee (Chief Investment Officer)
Michael Enright (Chief Financial Officer)
Akur Limited (Joint Financial Adviser)	Tel: [phone]
Tom Frost
Anthony Richardson
Siobhan Sergeant
Jefferies International Limited (Joint Financial Adviser and Broker)	Tel: [phone]
Gary Gould
Stuart Klein
Newgate (PR Adviser)	Tel: [phone]
James Benjamin	Em: [e-mail]
Alex Shilov
Lydia Thompson

Further information on Empiric can be found on the Company's website at www.empiric.co.uk.

Notes:

Empiric Student Property plc is a leading provider and operator of modern, direct-let, premium student accommodation across the UK and is committed to providing shareholders with regular, sustainable and growing (at least in line with RPI) dividends, together with the potential for capital appreciation over the medium to long term. Investing in both operating and development assets, the Company focuses on quality, with assets generally in prime central locations in top university cities and towns in the UK, attracting international students and/or those studying beyond first year, in particular, postgraduates. For the 2015/16 academic year, Empiric's customer base comprises 69% international students from 98 countries. 78% of the Company's customers are students beyond their first year of study.

The Company, an internally managed real estate investment trust ("REIT") incorporated in England and Wales, listed on the premium listing segment of the Official List of the Financial Conduct Authority and was admitted to trading on the main market for listed securities of the London Stock Exchange in June 2014. The Company is a constituent of the FTSE All Share and FTSE EPRA/NAREIT indices.

 

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