17th Apr 2025 11:40
(Alliance News) - Empiric Student Property PLC on Thursday said it has now completely deployed the proceeds raised in its October placing and retail offer which had been set aside for acquisitions, as it makes its second acquisition since the fundraise and wins planning permission in Bristol.
The London-based owner and operator of student accommodation in the UK reported it has completed its acquisition of Selly Oak Apartments in Birmingham for a total of GBP9.0 million.
The 63-bed mixed studio and shared apartment scheme grows Empiric's total operational beds in the cluster to 430. The property is fully-let for the 2024/25 academic year and is expected to deliver a yield in excess of Empiric's targeted 6% from September 2025.
The Selly Oak asset is also expected to deliver a potential 10% unlevered internal rate of return over the next five years.
"The acquisition of Selly Oak Apartments completes the deployment of proceeds which were earmarked for acquisition opportunities, in line with returns indicated. Birmingham is a top-tier university city where over 50,000 students currently seek accommodation in a city with provision of only 27,500 [purpose-built student accommodation] beds, and less than 10,000 new beds currently consented for future development," said Chief Executive Officer Duncan Garrood.
The company raised gross proceeds of around GBP56.1 million via a placing and retail offer in October 2024.
Empiric said the remaining proceeds from its fundraise have been allocated to postgraduate refurbishment works across three existing sites, which have been allocated GBP10 million for investment in 2025.
Proceeds have also "temporarily" been used to prepay a flexible debt facility, Empiric noted.
The company on Thursday announced its receipt of planning consent from Bristol City Council for the renovation of College House, a former office building acquired by Empiric in February 2024. College House will be turned into a 57-bed, all-studio accommodation block for postgraduate students.
The planning permission is further to the initial 32-bed residential consent obtained in June 2024.
Empiric will again use fundraise proceeds to fund the development, and expects the property to be completed and available for occupation in early 2026.
Shares in Empiric Student Property were up 0.5% at 89.70 pence each in London on Thursday morning.
By Emily Parsons, Alliance News reporter
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