Empiric acquires in Lancaster and Leicester

RNS Number : 1635O

Empiric Student Property PLC

26 May 2015

 

26 May 2015

Empiric Student Property plc

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

Empiric acquires student accommodation portfolio in Lancaster and Leicester

The Board of Empiric Student Property plc (ticker: ESP) is pleased to announce that the Group has acquired the freeholds of a portfolio of five operational, direct-let, premium student accommodation properties in Lancaster and Leicester from CityBlock, comprising a total of 381 beds, for a consideration of £26.5 million (excluding acquisition costs). 

The five properties are being acquired from CityBlock, which will continue to manage the operation of the properties on behalf of Empiric.  The properties have an excellent occupational track record and were fully let for the 2014/15 academic year, with 62% already pre-let across the portfolio for 2015/16.  The tenant mix is consistent with that across Empiric's existing portfolio.

Lancaster portfolio

The Lancaster portfolio comprises three blocks located on Penny Street, in close proximity to Royal Lancaster Infirmary and a short walk from the city centre.  The Lancaster University campus and the Lancaster campus of the University of Cumbria are both readily accessible.  Lancaster has a student population of around 22,700, (HESA 13/14) of which approximately 25% are post-graduate and 25% international.  The city prides itself on its first-rate network of cycle tracks and a pedestrianised city centre, as well as an efficient bus service, providing easy access to its excellent shopping and entertainment facilities. 

CityBlock 1 (constructed in 2003) is a low-rise, multi-storey block which provides a total of 30 beds comprising 30 en-suite bedrooms with shared kitchen and communal areas. There is also a ground floor retail unit.

CityBlock 2 (constructed in 2004) is a low-rise, multi-storey block which provides a total of 77 beds comprising 52 en-suite bedrooms with shared kitchen and communal areas and 25 studios. There are also two retail units that are let to Cartridge World and Subway on the ground floor level.

CityBlock 3 (constructed in 2012) is a low-rise, multi-storey block which provides a total of 100 beds comprising 57 en-suite bedrooms with shared kitchen and communal areas, 10 studios and 33 en-suite beds in five townhouses. There is a retail unit let to Sainsbury on the ground floor.

Leicester portfolio

The Leicester portfolio comprises two connected blks located on Careys Close, immediately adjacent to De Montfort University and within walking distance from the University of Leicester.  The properties are also very close to the centre of Leicester, a city which has a strong ethnic diversity with a mix of cultural and entertainment attractions.  Leicester is popular with students, who number around 30,000, as it is easy to get around and relatively inexpensive to live, with facilities such as Europe's largest outdoor market and many independent, as well as usual high street, shops.

CityBlock 1 (constructed in 2009) is a low-rise, multi-storey block which provides a total of 98 beds comprising 91 en-suite bedrooms with shared kitchen and communal areas and seven studios. There is also a ground floor retail unit about to be let to a local supermarket and a rooftop telecoms lease already in place.

CityBlock 2 (constructed in 2010) is a low-rise, multi-storey block which provides a total of 76 beds comprising 65 en-suite bedrooms with shared kitchen and communal areas and 11 studios. It also has a ground floor retail unit which is currently vacant.

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

"We are very pleased to have acquired this portfolio of five properties in Lancaster and Leicester, creating a very well located, attractive and highly specified portfolio in two new top university cities for the Group.  The tenant mix at the properties, which have an excellent occupancy track record, reflects the Group's target market of international and post-graduate students.  The acquisition of this portfolio represents an efficient deployment of equity capital in one transaction.  The 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
Alex Collins
Newgate (PR Adviser)	Tel: [phone]
James Benjamin	Em: [e-mail]
Andre Hamlyn
Lois Engstrand

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

Notes:

Empiric Student Property plc (incorporated in England & Wales) is an internally managed real estate investment trust ("REIT") investing in modern, premium, student accommodation, with a focus on quality and with assets generally in prime central locations in top university cities and towns in the UK.  The Company 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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