New Loan Facility of £30.63 million with RBS

RNS Number : 1377J

Empiric Student Property PLC

07 September 2016

 

7 September 2016

Empiric Student Property plc

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

New Loan Facility of £30.63 million with RBS

The Board of Empiric Student Property plc (ticker: ESP), the owner and operator of modern, premium student accommodation across the UK, is pleased to announce that the Group has agreed a new loan facility (the "Facility") of £30.63 million with The Royal Bank of Scotland plc ("RBS").  The Facility is secured against a portfolio of five forward funded assets, held as a lending group through a wholly owned subsidiary, Empiric Investments (Five) Limited.

The Facility is a development loan with each of the properties allocated a loan limit which will be drawn down in agreed stages over the development period of the property.  The Facility will convert into an investment loan for each development, separately, providing that, inter alia, such development has reached practical completion.

The amounts drawn down under the Facility will be segregated and non-recourse to the Company.  In accordance with the Company's investment policy, the Company will maintain a conservative level of aggregate borrowings, targeting a level of 35 per cent. but no more than 40 per cent. of the gross asset value of the Company (calculated at the time of draw down).  

Strategic advice on the structure and assistance in arranging the debt was provided by JCRA.

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

"RBS continues to support Empiric's strategy through the provision of this development debt facility.  The Facility will help to maximise the Group's development potential, enabling us to recycle equity currently committed to our forward funded developments."

Nick Cussen, Director - Real Estate Finance, RBS, commented:

"Empiric has established itself as a leading investor in both operating and development assets in the growing UK student accommodation market. We're pleased to provide ongoing and increased support for their future development plans."

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]
Zoe Pocock
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 comprised 69% international students from 98 countries. 78% of the Company's customers were 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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