Further Acquisition

RNS Number : 7890P

Empiric Student Property PLC

22 August 2014

 



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22 August 2014

Empiric Student Property plc

("ESP" or the "Company")

ESP acquires Edge Apartments for c. £8.9m

The Board of Empiric Student Property plc (LSE: ESP) is pleased to announce that, following practical completion of construction, it has now completed the acquisition of Edge Apartments, a purpose-built student accommodation property in Selly Oak, Birmingham, for consideration of £8.94m.

On 13 June 2014, the Company entered into a conditional acquisition agreement to acquire Edge Apartments from Prime Student Housing Birmingham Limited, a joint venture vehicle of London Cornwall Property Partners Limited (a company controlled by Paul Hadaway and Timothy Attlee, executive directors of ESP) and Revcap Advisors Limited, which developed the property.  The agreement was conditional upon, inter alia, practical completion of the property.

The purpose-built student accommodation property comprises 77 beds arranged in both individual studios and two bedroom apartment configurations. The property includes a gym, cinema room, games rooms and work rooms for the use of the student residents. The property also benefits from rental income from a Sainsbury's store (which is let on a 15 year lease) and a coffee shop on the ground floor.

The student accommodation rooms in the property are let for 51 weeks of the year and are 100% let for the 2014/15 academic year.  The property is in a prime location opposite the main University of Birmingham campus in Selly Oak and is next to Brook Studios, the student accommodation property acquired by the Company on 23 July 2014.  Collegiate AC will manage both properties on behalf of ESP, bringing cost savings from the joint operation.

Following completion of Edge Apartments, the Company has now acquired all four initial student accommodation assets highlighted in its IPO prospectus (dated 16 June 2014) for an aggregate consideration of c. £40m.  The Company has also acquired a further three student accommodation assets including one joint venture development property (in Southampton ), a forward funded asset in Edinburgh and a standing asset in Birmingham.  In addition, as announced by the Company on 8 August 2014, missives have been concluded, subject to planning, in relation to another development property (in Glasgow) which it is intended will be acquired by the group and developed as a joint venture following receipt of planning consent.

The Company intends to provide a trading update on its progress since IPO and outlook on or about 15 September 2014, following the start of the 2014/15 academic year.

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

"We are delighted with the progress that we have made to date in establishing a portfolio of high quality student accommodation assets, which are expected to provide returns in line with our investment policy parameters.  A number of additional properties are currently under negotiation and we look forward to announcing such additional acquisitions in due course."

For further information on the Company, please see the website at www.espreit.co.uk or contact:

Empiric Student Property plc	(via Citigate Dewe Rogerson)
Paul Hadaway (Chief Executive)
Tim Attlee (Chief Investment Officer)
Michael Enright (Chief Financial Officer)
Dexion Capital (Joint Financial Adviser and Broker)	Tel: [phone]
Ravi Anand
Robert Peel
Akur Limited (Joint Financial Adviser)	Tel: [phone]
Tom Frost
Anthony Richardson
Siobhan Sergeant
Citigate Dewe Rogerson (Financial PR)	Tel: [phone]
Grant Ringshaw	Email: [e-mail]
Toby Moore
Shelly Chadda

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 city centre locations in top university cities 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 on 30 June 2014. 

 

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