Empiric acquires development site in Durham

RNS Number : 4369R

Empiric Student Property PLC

29 June 2015

 

29 June 2015

Empiric Student Property plc

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

Empiric acquires development site in Durham: Framwellgate

The Board of Empiric Student Property plc (ticker: ESP) is pleased to announce that the Group has conditionally exchanged contracts on the purchase of the freehold of a site on Framwellgate in Durham which will provide for a 131 bed premium, purpose-built student accommodation development, at a cost of £1.225 million (excluding fees).  The acquisition of the site is subject to, inter alia, planning consent and is expected to complete by February 2016.

The scheme will comprise groups of 4 to 18 en-suite bedrooms together with top floor self-contained studios, arranged as "town houses" with each "town house" having its own communal facilities.  In total, the scheme is expected to comprise 116 bedrooms and 15 studios.

On receipt of planning permission, the Company will carry out the development directly, its 3^rd direct development to date.  It is anticipated that construction works will commence in the second quarter of 2016 with a view to practical completion in June 2017 in advance of the 2017/18 academic year.

The site is located on Framwellgate, close to Durham railway station and city centre, and a 15 minute walk to the University of Durham, ranked 6^th in The Times Good University Guide 2015.  Once the development is complete, the scheme will complement the Group's existing student accommodation property in Durham, St Margaret's Flats, and will provide the Company with an opportunity to combine operations and achieve economies of scale.

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

"Durham markets itself as a traditional collegiate university, yet many of the colleges and private sector accommodation are not consistent with that image.  We believe that premium apartments and studios arranged around a staircase in a collegiate town house, with the usual Empiric communal facilities is the right offer for this city. Demand for student accommodation in Durham remains high and Framwellgate has an ideal central location.  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]
Sara Hourigan
Andre Hamlyn

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, direct-let, premium, student accommodation, both standing and development assets, 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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