Acquisition

RNS Number : 8492N

Empiric Student Property PLC

14 August 2017

 

14 August 2017

Empiric Student Property plc

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

Empiric acquires forward funded scheme in Edinburgh: King's Stables 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 land with planning permission and entered into a forward funded agreement for a 166 bed premium student accommodation development in Edinburgh (the "Property") for a total funding commitment of £26.56 million (excluding costs). The Property will be valued post-completion and the developer may be entitled to a further capped payment at that time.

The redevelopment will involve the demolition of the existing buildings and the construction of new purpose-built student accommodation, comprising an all-studio bed scheme with communal facilities. The Property is one component of a wider mixed-use development (being constructed by the same developer, Peveril Securities Limited) comprising a hotel and 52 residential units. Practical completion of the Property is expected in time for the 2019/20 academic year.

Empiric will be responsible for the marketing and letting of the scheme through the Hello Student® operating platform. A show flat will be made available in November 2018 to coincide with the market cycle. The Property will be Empiric's second in Edinburgh, bringing the total size of the portfolio in the city to 254 beds.

The Property is located opposite the iconic Edinburgh castle and more than half of the rooms will benefit from views of this World Heritage Site. The scheme also benefits from close proximity to the popular Grassmarket area of the city, and is ten minutes' walk to the University of Edinburgh's main campus.

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

"We are very pleased to have made this acquisition in the heart of Edinburgh's Old Town. The city contains 49,705 full-time students (latest available HESA data 2015/16) and the University of Edinburgh attracts 38% of its full-time students from international backgrounds. This is a very well-regarded institution benefitting from a particularly strong ratio of 10.5 undergraduate applications to acceptances (6.6 nationally). 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)
Lynne Fennah (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]
Anna Geffert
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, nominated or leased student accommodation across the UK. Investing in both operating and development assets, Empiric is a multi-niche student property company focused on, (i) providing good quality first year accommodation managed through its Hello Student® operating platform in partnership with universities, (ii) offering a variety of second and third year purpose built accommodation options for individual students and those wanting a group living environment, and (iii) continuing to expand the Group's existing premium, studio-led accommodation portfolio which is attractive to international and postgraduate students.

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.

 

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