Empiric Student Property-Seed Property Acquisition
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1 July 2014
Empiric Student Property plc
("ESP" or the "Company")
ESP acquires first three student accommodation properties for c.£31m
The Board of Empiric Student Property plc (LSE: ESP) is pleased to announce that, following the successful completion of its recent IPO, it has now completed the acquisition of its first three student accommodation properties for a total consideration of c. £31m, as set out below:
· College Green, Bristol (84 bed long leasehold property, acquired for £9.97m at a net initial yield of 6.4%);
· Picturehouse Apartments, Exeter (102 bed freehold property, acquired for £11.41m at a net initial yield of 6.5%); and
· Summit House, Cardiff (87 bed freehold property, acquired for £9.58m at a net initial yield of 6.5%).
In addition, the Board expects to complete the acquisition of Edge Apartments, Birmingham (77 bed freehold property) at an acquisition price of £8.94 million, by mid-August 2014 (upon practical completion of the building). Following this, the aggregate consideration paid for all four initial student accommodation properties will be c. £40m, representing almost 48 per cent. of the net proceeds from the IPO.
Paul Hadaway, Chief Executive of Empiric Student Property plc, commented:
"We are pleased to have already completed the first three acquisitions following ESP's admission to the London Stock Exchange on 30 June 2014. We look forward to completing the acquisition of Edge Apartments in Birmingham in August 2014. In the meantime, we are making significant progress towards acquiring further properties which will enable the Company meet its objective of providing shareholders with regular, sustainable and growing long-term dividends as well as capital growth in the medium to long term. Once fully invested, the Company is targeting an annual dividend of 6% (based on the IPO issue price of £1.00 per share) with an additional 7% average annual growth in net asset value."
About the Properties
On 13 June 2014, the Company entered into conditional acquisition agreements to acquire the above three properties from joint venture vehicles owned by London Cornwall Property Partners Limited and Revcap Advisors Limited. Each of the properties is let for 51 weeks of the year and has enjoyed 100% occupancy levels to date. The rents for the 2014/2015 academic year range from £109 to £206.50 per bed per week.
College Green, Bristol
In operation since the commencement of the 2011 academic year, College Green was a conversion of an office building into student accommodation and is located approximately 10 minutes' walk from the University of Bristol campus. The property comprises 84 beds arranged in individual studios and two bedroom apartments and includes a gym, cinema room, games rooms and work rooms for the use of the student residents. The property also includes a small Morrison's supermarket on the ground floor which is let on a 15 year lease, together with other retail/coffee shop units.
Picturehouse Apartments, Exeter
In operation since the commencement of the 2013 academic year (and formally completed in April 2014), Picturehouse Apartments is a purpose-built student accommodation property located 10 minutes' walk from the University of Exeter campus. The property comprises 102 beds arranged in individual studios and two bedroom apartments and includes a gym, cinema room, games rooms and work rooms for the use of the student residents. The property also includes a small Tesco supermarket on the ground floor let on a 20 year lease.
Summit House, Cardiff
In operation since the commencement of the 2013 academic year, Summit House was an office conversion and is located only 5 minutes' walk from the Cardiff University campus. The property comprises 87 beds arranged in individual studios and two bedroom apartments and includes a gym, cinema room and work rooms for the use of the student residents. The property also benefits from rental income from an antennae lease of roof space and a separate coffee shop on the ground floor.
Note: Investors should note that the figures in relation to dividends, total shareholder return and targeted annual growth in Net Asset Value set out above are for illustrative purposes only and are not intended to be, and should not be taken as, a profit forecast or estimate. They have been calculated using the Principal Bases and Assumptions shown in paragraph 15 of Part 8 of the Company's IPO prospectus. Actual returns cannot be predicted and may differ materially from these illustrative figures. There can be no assurance that they will be met or that any dividend or Net Asset Value growth will be achieved.
For further information, please see the Company's website at www.espreit.co.uk or contact:
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Empiric Student Property plc |
(via Citigate Dewe Rogerson) |
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Paul Hadaway (Chief Executive) |
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Tim Attlee (Chief Investment Officer) |
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Michael Enright (Chief Financial Officer) |
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Dexion Capital (Joint Financial Adviser and Broker) |
Tel: 020 7832 0900 |
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Ravi Anand |
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Robert Peel |
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Akur Limited (Joint Financial Adviser) |
Tel: 020 7493 3631 |
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Tom Frost |
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Anthony Richardson |
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Citigate Dewe Rogerson (Financial PR) |
Tel: 020 7638 9571 |
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Grant Ringshaw |
Email: ESP@citigatedr.co.uk |
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Toby Moore |
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Shelly Chadda |
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Notes:
Empiric Student Property plc (incorporated in England & Wales) intends to carry on business as an internally managed real estate investment trust ("REIT"), subject to meeting the necessary qualifications, and to invest in modern, high-end, student accommodation assets, 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, having raised gross proceeds of £85 million in its initial public offering.
This information is provided by RNS
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