3rd Oct 2014 07:38
LONDON (Alliance News) - Empiric Student Property PLC Friday said it is considering introducing a 12 month share issuance programme, which would give it the flexibility to issue shares as needed, having identified a "strong pipeline of potential properties".
The student accommodation company, which listed on London's main market in June, has already acquired 10 student accommodation assets since its IPO, including one joint venture development property in Southampton, a forward funded asset in Edinburgh, and four standing assets in Birmingham, Aberdeen, Nottingham and Southampton.
It said it has also exchanged contracts for a seventh asset, another development property in Glasgow which is subject to planning consent and which it intends to acquire and develop as a joint venture.
The company said it has paid around GBP81.4 million for its property portfolio to date.
"The company's standing assets are over 99% occupied for the 2014/15 academic year generating a gross annual rent of approximately GBP6.1 million, in line with the directors' expectations," it said.
Empiric Student Property said that having now invested or committed substantially all of its net proceeds from the IPO, it is considering the introduction of a 12 month share issuance programme, as it believes there is a strong pipeline of suitable new investment opportunities which are in various stages of progress and due diligence.
It said the amount of the initial tranche of the share issuance programme is yet to be determined, but said its expected to close before the calender-year end. It said it will announce details of the proposed share issuance programme, which will be subject to shareholder approval, in due course.
"Since IPO, we have continued to source a strong pipeline of suitable new investments, making use of our established network. With the support of new and existing investors, together with the company's access to debt, we look forward to driving the growth of the company going forward," said Chief Executive Paul Hadaway in the statement.
Empire Student Property also said its subsidiary, Empiric Investments One Ltd, is in the process of agreeing a GBP35.5 million term loan debt facility against its current portfolio of assets.
The company said that it will maintain a conservative level of aggregate borrowings of no more than 40% of the gross asset value of the company.
The company's stock was untraded Friday morning at 99.15 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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