29th Sep 2014 08:20
LONDON (Alliance News) - Empiric Student Property PLC said Monday that it has exchanged contracts to acquire the freehold and leasehold of a student accommodation property on London Road in Southampton, for a cash consideration of GBP3.6 million.
The company said the operating, direct-let, premium student property has been acquired from Urban Creation, which developed Phase 1 of the property (34 beds) in 2013, with Phase 2 (12 beds) having been completed in September 2014 in time for the 2014/15 academic year.
The property is currently approximately 96% let for the 2014/15 academic year and, in any event, the vendor has provided a 100% rental guarantee for the year, said Empiric.
The property is located in central Southampton, close to Southampton Solent University and between the city centre and the University of Southampton. The 46 beds are arranged in predominantly self-contained studio apartments, with a small number of two bed apartments, with bike storage and other communal facilities.
The site is in close proximity to Empiric's Brunswick House development, which is expected to open in September 2015, and it is anticipated that both schemes will be paired, operationally, with students having access to the Brunswick House communal facilities and enabling the company to share operational costs.
Last week Empiric exchanged contracts on a deal to buy the freehold of Talbot Studios, a student accommodation property in Nottingham, for GBP8.2 million.
Shares in Empiric Student Property were Monday morning untraded, quoted at 101.00 pence per share.
By Alice Attwood; [email protected]; @AliceAtAlliance
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