Interim Management Statement

RNS Number : 7343V

Empiric Student Property PLC

30 October 2014

 



NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO, THE UNITED STATES OF AMERICA, CANADA, JAPAN, AUSTRALIA OR SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE IT IS UNLAWFUL TO DISTRIBUTE THIS ANNOUNCEMENT OR ANY COPY OF IT.

30 October 2014

Empiric Student Property plc

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

Interim Management Statement

The Board of Empiric Student Property plc (LSE: ESP) is issuing its Interim Management Statement in accordance with Disclosure and Transparency Rule 4.3 of the UK Financial Conduct Authority. This statement relates to the period from 1 July 2014 to the date of this statement.

Highlights

·        IPO in June 2014, raising gross proceeds of £85m

·        Admitted to trading on the Main Market of the London Stock Exchange and listed on the premium listing segment of the Official List of the Financial Conduct Authority on 30 June 2014

·        Secured £35.5m senior debt facility from The Royal Bank of Scotland plc in October 2014 (the "RBS Loan")

·        To date, over £100m invested or committed in a portfolio of purpose-built student accommodation properties, comprising ten operating assets (774 beds in total), one forward funded asset (86 beds) and two joint venture development assets (351 beds, in total) with Revcap Advisors Limited ⁽¹⁾

·        Average unaudited net initial yield of the ten operating properties is 6.7 per cent.

·        The unaudited estimated net asset value of the Company as at 30 September (including all property acquisitions (completed and exchanged) as at that date) was 99.8 pence per share

·        Interim dividend of 1.5 pence per share declared in respect of shareholders on the register on 7 November 2014

·        A prospectus and circular published today in respect of a proposed share issuance programme of up to 300 million new ordinary shares over the next 12 months, commencing with an initial issue at a price of £1.01 per share to raise gross proceeds of up to £65.65m

Property Portfolio

The Company has successfully invested or committed substantially all of the net investable funds raised from its initial £85 million IPO in June 2014 in a portfolio of 13 high quality purpose-built student accommodation properties, both operating and under development, in line with the Company's investment policy (with an aggregate of 1,211 beds). The Company's standing assets are fully let for the 2014/15 academic year.

The Company is in final stage negotiations on two forward funded assets and one standing operating property representing a total commitment of approximately £30 million (with an aggregate of 337 beds).  Subject to the satisfactory completion of negotiations, all of these assets are expected to be acquired by December 2014 and will be funded principally by the RBS Loan.

The Company is also in advanced stages of negotiation in relation to a near-term pipeline comprising 15 properties across the UK, with an aggregate of more than 1,800 beds representing a total commitment of approximately £180 million that would be able to be acquired by the Group over the next several months, and by no later than the end of March 2015. Beyond the identified pipeline described above, the Company has a further pipeline of assets under consideration at earlier stages of due diligence and negotiation representing an additional potential commitment of approximately £400 - 600 million.

Dividend

The Company expects to pay dividends totalling 2 pence per Share in respect of the period from IPO to 31 December 2014.  The first interim dividend of 1.5 pence per Share was declared today in relation to this period with a record date of 7 November 2014. The Company expects the balance of 0.5 pence per Share to be paid following the period end.

Note:

(1)        In relation to one of the joint venture development properties, Willowbank (Glasgow), London Cornwall Property Partners ("LCPP"), acting on behalf of Empiric (Glasgow) Limited, has concluded missives (equivalent to exchange of contracts under English law) with Glasgow City Council in relation to the acquisition of Willowbank. Completion of the acquisition of Willowbank will be subject to receipt of planning approval and listed building consent to redevelop the building into direct-let premium student accommodation. LCPP is a company controlled by Timothy Attlee and Paul Hadaway, Executive Directors of the Company. It has been agreed that Willowbank will be transferred from LCPP to Empiric (Glasgow) Limited shortly after completion of the purchase. LCPP will receive no economic benefit from its role in the transaction. 

For further information on the Company, please contact:

Empiric Student Property plc	(via Newgate Communications)
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 Communications (Financial PR)	Tel: [phone]
James Benjamin	Em: [e-mail]
Clotilde Gros
Georgia Lewis

Further information on ESP 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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