REG - Empiric Student Prop - Update on deployment of placing proceeds

Empiric Student PropertyAnnouncement

13/01/2025 07:00

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RNS Number : 9665S  Empiric Student Property PLC  13 January 2025

 

 

Empiric Student Property plc

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

 

Update on deployment of placing proceeds

& planning consent achieved at Victoria Point, Manchester

 

Empiric Student Property plc (ticker: ESP), the owner and operator of premium,
studio-led student accommodation aligned to top-tier universities, is pleased
to provide an update on the deployment of proceeds from the Company's October
2024 Equity Fundraise and the receipt of planning permission to add over 300
beds to Victoria Point, Manchester.

Update on deployment of proceeds from Equity Fundraise

In line with the proposed use of proceeds set out in October 2024, we
successfully completed the acquisition of Tatton House, Manchester, a 136 bed,
all-studio scheme, acquired for £19.75 million in December 2024. The property
is well located, being less than 10 minutes walk to the Manchester University
campus whilst also opposite our existing Victoria Point Hub. This location
allows us to unlock operational efficiencies and improve the low amenity offer
currently available to residents of Tatton House. This operational PBSA asset
is expected to deliver a 7 per cent net initial yield from September 2025.

A second acquisition is under offer and currently expected to conclude by the
end of the first quarter of 2025, also in line with our deployment
assumptions.

Preparatory works have begun at three existing sites earmarked for conversion
to the Company's Postgraduate product, with over £10 million on track for
investment during 2025. These refurbishments are expected to deliver unlevered
IRRs in excess of 12 per cent. In the meantime, proceeds have been applied in
prepayment of a flexible debt facility.

A further update will be provided alongside the Company's annual results on 13
March 2025.

Planning permission received at Victoria Point

We are pleased to announce that Manchester City Council has granted detailed
planning permission for the comprehensive redevelopment and reconfiguration of
our Victoria Point site. The permission allows the redevelopment of two of the
existing buildings and extensions of the remaining four. In aggregate,
Victoria Point has been granted consent to increase the current provision of
beds by 310 to 876. All retained rooms will benefit from refurbishment or
reconfiguration with further investment planned to improve the schemes
sustainability credentials and the amenities available to students in our
Manchester cluster.

Implementation is not anticipated to begin until late 2026 and may be
completed in a phased manner.

Duncan Garrood, Chief Executive Officer of Empiric, commented: "Following the
Company's successful fundraise last year, we have been focused on
strategically deploying the proceeds into growth opportunities, expanding our
Manchester cluster through the addition of Tatton House and  progressing our
Postgraduate pipeline through the repositioning of existing buildings. These
activities, in addition to the recent grant of planning permission at Victora
Point, support our strategy of growing a portfolio of high quality buildings
in top-tier university locations where purpose built student accommodation
remains acutely undersupplied."

 

ENDS

 

 

FOR FURTHER INFORMATION ON THE COMPANY, PLEASE CONTACT:

 Empiric Student Property plc                                 (via FTI Consulting below)
 Duncan Garrood (Chief Executive Officer)
 Donald Grant (Chief Financial & Sustainability Officer)

 FTI Consulting                                               020 3727 1000

 Dido Laurimore                                               empiric@fticonsulting.com (mailto:empiric@fticonsulting.com)

 Eve Kirmatzis

 

The Company's LEI is 213800FPF38IBPRFPU87.

 

Further information on Empiric can be found on the Company's website at
www.empiric.co.uk (http://www.empiric.co.uk/) .

 

Notes:

Empiric Student Property plc is a leading provider and operator of modern,
predominantly direct-let, premium student accommodation serving key UK
universities. Investing in both operating and development assets, Empiric is a
fully integrated operational student property business focused on premium
studio-led accommodation managed through its Hello Student operating platform,
that is attractive to affluent growing student segments.

 

The Company, an internally managed real estate investment trust ("REIT")
incorporated in England and Wales, listed on the Equity Shares 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 classified as a commercial company listed under the UK
Listing rules and as such is not an alternative investment fund ("AIF") for
the purposes of the Alternative Investment Fund Managers Directive ("AIFMD")
and is not required to provide investors with a Key information Document
("KID") in accordance with the Packaged Retail and Insurance-based Investment
Products ("PRIIPs") regulations.

 

 

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