Empiric acquires student development in Aberdeen

RNS Number : 9621G

Empiric Student Property PLC

10 March 2015

 

10 March 2015

Empiric Student Property plc

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

Empiric acquires student accommodation development in Aberdeen: Spital Court Studios

The Board of Empiric Student Property plc (ticker: ESP) is pleased to announce that the Group has acquired the freehold of a forward funded development in Aberdeen, known as Spital Court Studios.  It is currently being developed into a prime, purpose-built student accommodation asset by local developer, Scape Homes.

The site is located on the corner of St Peter Street and St Peter Lane, within half a mile of the University of Aberdeen and close to the city centre.  The property is also within a 10 minute walk of Centro Court, the Group's 56 bed operating student accommodation property in Aberdeen, which will provide the Company with an opportunity for combining operations and achieving economies of scale.

The Group has entered into agreements to forward fund the development, comprising 123 self-contained studios of various sizes, designed to Empiric's high specifications, with practical completion expected in June 2016 in time for the 2016/17 academic year.  The full investment required for the development is £12.9 million, which will be invested in stages against development milestones. The Company will receive an income return from the developer on funds invested during the development period. 

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

"Spital Court is the Group's second acquisition in Aberdeen which, with a student population of approximately 20,900, representing some 120 nationalities, makes it an ideal target market for Empiric.  Forward funded projects provide the Group with yields on cost of approximately 8%, with reduced risks compared to direct development projects.  This 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)
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 (Financial PR)	Tel: [phone]
James Benjamin	Em: [e-mail]
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, 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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