- 30 Jun 2014 10:33
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First day of dealings
Sunday share tips: Whitbread, Petra Diamonds, Empiric Student Property
Buy Empiric Student Property when it floats this week to tap into demand for more upmarket student housing, Midas advised in the Mail on Sunday. The management team will use £80m of the flotation proceeds to buy 11 properties to add to its existing fully occupied housing. In the UK’s 27 top university cities, 96% of non-first years have no access to purpose-built housing. Many are prepared to pay to be near city centres, including 300,000 international students. Investors can expect a 6% dividend yield in the first year and capital growth as rents rise and development properties come into use
- 06 Jul 2014 14:09
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Empiric Student Property-Seed Property Acquisition
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.
ESP acquires forward funded property in Edinburgh
The Board of Empiric Student Property plc (LSE: ESP) is pleased to announce that the Company has entered into an agreement in relation to the acquisition of a forward funded development of an 86 bed direct-let, premium student accommodation scheme in Edinburgh.
The Company has agreed to purchase the freehold of the site, part of a listed former cinema building, located on Buccleuch Street, Edinburgh, from Cruden Homes (East) Limited for a total consideration of c. £8.52m. Cruden Homes (East) Limited will be managing the construction of the property on behalf of ESP, with practical completion scheduled for May 2016.
- 09 Jul 2014 07:11
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ESP enters joint venture to acquire development project in Southampton
The Board of Empiric Student Property plc (LSE: ESP) is pleased to announce that the Company, in a 50:50 joint venture arrangement with Revcap Advisors Limited ("Revcap") (the "JV Entity"), has exchanged contracts to acquire a direct development project in Southampton. The project comprises the redevelopment of a commercial property into a direct-let, premium student accommodation scheme and has planning permission for 158 studio beds.
The JV Entity has agreed to purchase the freehold of Brunswick House, on Brunswick Place, Southampton from Bannerdale Estates Limited for consideration of £3.575m (excluding VAT). The acquisition is expected to complete on 28 July 2014. The proposed opening target date for the development is September 2015.
Paul Hadaway, Chief Executive of Empiric Student Property plc, commented:
"Brunswick House is a significant student accommodation development scheme in central Southampton, close to Southampton Solent University and between the city centre and the University of Southampton. We look forward to working with Revcap to develop this project in time for the 2015/16 academic year."
- 08 Nov 2014 22:50
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MIDAS UPDATE: Second fundraising for luxury student flats operator Empiric
By Joanne Hart, Financial Mail on Sunday
Published: 22:11, 8 November 2014 | Updated: 22:11, 8 November 2014
An uncomfortable number of companies have had to pull out of flotations in recent months because large investors were unimpressed with what they had to offer.
But one firm that has managed to come to market is Empiric Student Property, which specialises in high-end accommodation, primarily for overseas students.
Midas looked at Empiric in June, a fortnight before it floated. At the time, the company said it wanted to raise between £110million and £150million at 100p a share. Ultimately, it raised £85million.
Class act: Empiric wants £65million from investors to create top-end student flats
Today, the stock is 102p and Empiric is now asking for just over £65million more cash – essentially the money it wanted back in June, but this time at 101p a share. Empiric is ambitious. The company is targeting a 6 per cent dividend yield and 7 per cent capital growth annually, achieved from a combination of rental income and an increase in the value of its properties.
The early signs are promising. Having come to market on June 30, the group has said it will pay a 2p dividend for the five months to December and a significant increase is likely for 2015.
The company already has eight accommodation buildings, which are more than 99 per cent let for the next academic year, and most of the £85million has been invested or committed.
Chief executive Paul Hadaway wants more money because he is in advanced negotiations to buy 15 more properties valued at about £180million.
The company will need to return to the stock market if all these negotiations prove successful and Hadaway has said that he would like to have 300 million shares in issue within a couple of years – more than double the number that will be in issue if this latest fundraising is successful.
In some sectors, such a programme would sound scary. For Empiric, it makes sense. Student accommodation is in short supply and Empiric is focusing on upmarket units in top university towns, where rents are rising above inflation.
Midas verdict: Empiric is operating in a growth market, Hadaway is an experienced operator and the company should deliver a decent mixture of income and share price appreciation. The current fundraising is worth a close look, particularly for longterm investors.
Traded on: Main market Ticker: ESP
- 26 Feb 2015 16:36
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Listen: Empiric Student Property - Interim results
- 18 Sep 2015 20:13
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- 21 Sep 2015 14:28
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Jefferies International Buy 110.13 - 125.00 Initiates/Starts
- 09 Nov 2015 07:21
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ESP to acquire student accommodation in Cardiff
Empiric to acquire student accommodation property on practical completion in Cardiff: Windsor House
The Board of Empiric Student Property plc (ticker: ESP) is pleased to announce that the Group has exchanged contracts to acquire on practical completion the freehold of a premium student accommodation property in central Cardiff for £40 million (excluding costs).
The property, which is Empiric's fourth acquisition in Cardiff, is located directly opposite the Group's existing Summit House property on Windsor Place, in the city centre within a ten-minute walk from the University of Cardiff. Cardiff is also home to Cardiff Metropolitan University and the University of South Wales.
The new-build student accommodation property is currently under construction and will comprise 314 beds across a mix of studios and two bed apartments, with communal facilities. This will increase the Group's presence in Cardiff to 519 beds, representing approximately 2% of the full-time student population in Cardiff.
The property, which will be acquired with a first year rental guarantee, is currently owned by the developer, Fusion Students, and is expected to be operational by August 2016, in time for the 2016/17 academic year.
- 01 Mar 2016 10:23
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INTERIM RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2015
The Board of Empiric Student Property plc (ticker: ESP), the owner and operator of modern, premium student accommodation across the UK, today announced the Company's unaudited interim results for the six months to 31 December 2015.
· As at 31 December 2015, our portfolio was valued at £361.7m (30 June 2015: £251.3m).
· Our portfolio of operating assets had gross annualised income of £25.1m as at 31 December 2015 (31 December 2014: £8.4m).
· We have paid or declared two dividends in respect of the six month period ended 31 December 2015, equating in aggregate to 3p per share (see Post balance sheet highlights below).
· Our total return for the period from IPO to 31 December 2015 was 19%(1).
· We raised an additional £161.4m (gross) of equity and drew down an additional £19.1m of the RBS debt facility.
· We acquired a further 2,165 beds (596 operating and 1,569 under development), bringing our total to 5,686 beds across 58 assets in 26 cities and towns as at 31 December 2015.
· The average net initial yield of our operating portfolio at acquisition is 6.4% against our period end valuation yield of 5.8%. Our portfolio is fully let(2) for the 2015/16 academic year.
Post balance sheet highlights
· We have started building our operational capacity to bring marketing, billing, booking and building and facilities management together under one brand and platform: Hello Student®.
· Dividend of 1.5p declared for the period 1 October to 31 December 2015.
· New secured debt facility of £40m agreed with Canada Life, and targeting an LTV of 35% in the near term.
· Launch of new 165m share issuance programme in order to achieve our stated objective to acquire 10,000 beds. Initial tranche to raise target gross proceeds of £90m to fund the near term acquisition pipeline.
- 01 Mar 2016 10:29
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- 10 Mar 2016 11:50
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Empiric Student Property will be added to the FTSE EPRA/NAREIT Global Real Estate Index Series from 21 March having successfully satisfied the required eligibility criteria during the March 2016 review.
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Closing date for the extra equity is 15th March 2016......107.5p
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The Company has today declared a dividend of 1.5 pence per Share for the period 1 October 2015 to 31 December 2015 to Shareholders on the register on 11 March 2016. The dividend is expected to be paid on or around 23 March 2016.
- 10 Mar 2016 11:58
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So not much of a discount to current sp for the new shares and goes ex-divi tomorrow.
Will be interesting to see if the sp goes below the offer price.
- 24 Mar 2016 16:25
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Numis Add 109.00 124.00 124.00 Retains
- 24 Mar 2016 16:50
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I quite like this one. Forecast divi yield around the 5.5% level. Want to put it in my stock ISA so will have to wait for 6th Apr.
- 29 Mar 2016 09:26
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Empiric Student Property has acquired student accommodation properties in Reading and Manchester.
In Reading, Empiric has acquired the freehold of an 83 bed, premium student accommodation property in Reading for a consideration of GBP13.0 million (excluding costs) from the developer, Bywater Properties.
Saxon Court, the group's first acquisition in Reading, was newly built for the 2015/16 academic year to a high specification. The property is an all-studio scheme with communal facilities, plus a basement car park, which is let for a five-year term to a local operator. The property is located in central Reading, within a short walk of the railway station and the London Road and Whiteknights campuses of the University of Reading.
In Manchester, the group has acquired the 145 year leasehold of a 117 bed, premium student accommodation property in Manchester for £10.25 million (excluding costs) from Accrue Capital.
As well as the two main universities, The University of Manchester and Manchester Metropolitan University, the city is home to several smaller institutions such as the Royal Northern College of Music. The city, therefore, has the second highest student population outside London.
Ladybarn House was built in 1994 by The University of Manchester (which remains the freeholder) and was subsequently comprehensively refurbished by Accrue Capital in 2012. The property comprises 117 beds over three floors in a mix of studios, 1-bed apartments and 4-bed en-suite apartments, with communal facilities. The property also has four ground floor retail units which are fully let. The property is located in the popular student suburb of Fallowfield, south Manchester, opposite The University of Manchester's residential Fallowfield Campus.
- 31 Mar 2016 08:34
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Empiric Student Property has acquired the land and entered into a forward funded development agreement for a 115 bed, premium student accommodation development in York for a total funding commitment of GBP11.1 million.
The property, Empiric's first in York, is located between York city centre and the University of York, and is approximately 1.5 miles from York St John University.
According to the latest HESA statistics (for the 2014/15 academic year), the total full-time student population in York was over 20,000, with 20.5% international students and 17.8% postgraduates. The University of York is ranked 15th in The Times Good University Guide 2016.
The Lawrence Street development comprises the redevelopment of two existing listed buildings, together with a newly built wing, to create a premium student accommodation scheme with a mix of studios and flats with one, two, three and five bedrooms, as well as communal facilities. The existing buildings will be retained, repaired and refurbished in accordance with the Listed Building Consent which has been granted.
- 01 Apr 2016 10:31
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Empiric Student Property has acquired the freehold of a 44 bed student accommodation property in Oxford for GBP4.5 million (excluding costs).
Stonemason House was built in 2011 as a new build scheme in time for the 2011/12 academic year. The property comprises 44 beds in a mix of four, five, six and seven-bed en-suite apartments. The property is located just off Cowley Road, a vibrant and multi-cultural area of Oxford, with bars, restaurants and boutique shops, popular with students from both universities.
The property has been acquired from a local housing association and since completion in 2011 has been leased to St Cross College of The University of Oxford. The current three-year lease is due to expire in September 2017. The property will be managed through the Company's Hello Student operating platform.
Chief executive Paul Hadaway said: "Stonemason House is our first acquisition in Oxford, a city synonymous with higher education in the UK. The property benefits from an existing lease with St Cross College, guaranteeing full occupancy for the term of the lease. We are very pleased to have been able to acquire this property in a market with limited private sector, purpose-built student accommodation. This acquisition is in line with Empiric's investment criteria and returns profile."
- 04 Apr 2016 08:09
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Empiric Student Property has agreed a new fixed rate term loan facility of GBP80 million arranged by Cornerstone Real Estate Advisers Europe LLP, a member of the MassMutual Financial Group.
The facility is secured against a portfolio of 20 operating assets, held as a lending group through a wholly owned subsidiary, Empiric Investments (Four) Limited.
The facility is available to draw down in full, subject to the fulfilment of certain conditions precedent, until 12 April 2016. It is repayable 12 years from the date of the initial draw down and has a fixed all in rate of 3.24 per cent., interest only, throughout the term. This rate is fixed up to a loan to value ratio of 55 per cent.
The amounts drawn down under the Facility will be segregated and non-recourse to the Company. Part of the Facility will be used to refinance GBP37.2 million of debt which has been repaid to Santander and Royal Bank of Scotland, with the balance of £42.8 million (before expenses) to be used to fund further acquisitions.
- 25 Apr 2016 08:31
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Empiric Student Property has acquired the long leasehold - 999 years from March 2007 - of a 561 bed scheme in Manchester for GBP29.5 million (excluding costs) from MCR Property Group. Victoria Point, Manchester, was constructed in 2009 by the vendor as a private residential scheme comprising apartments and duplexes across six separate blocks of accommodation on a 3.5 acre site.
The property has been let entirely to students since it was built and is located in the Victoria Park area of Manchester, a popular student area convenient for The University of Manchester, Manchester Metropolitan University and the Royal Northern College of Music.
Chief executive Paul Hadaway said: "With its large student population - the third largest in the UK with 61,990 full-time students in 2014/15 according to HESA statistics - we are pleased to have made this further significant purchase in Manchester, taking our presence in the city to 765 beds. This large site with low density provides the opportunity for further development, if appropriate, including communal facilities to create a purpose-built student hub. This acquisition is in line with Empiric's investment criteria and returns profile."
Empiric also announced that it has acquired the 50% share in Empiric (Southampton) Limited previously owned by an investment fund affiliated with Revcap Advisors Limited. As a result, the group now owns 100% of the interest in Brunswick House in Southampton. In July 2014, the Group entered into the 50:50 joint venture arrangement with Revcap to redevelop Brunswick House.
The project was completed in September 2015 and comprises 173 beds made up of a mix of studios and one, two and three bed apartments, together with communal facilities, and four commercial units. The property is currently fully let and bookings for the 2016/17 academic year are well ahead of bookings at this time last year. Empiric has agreed to pay Revcap GBP4.95 million as an initial payment calculated in accordance with the terms of the joint venture arrangements. A further payment will become due within 18 months, the quantum of which will be determined at the time based on certain specified parameters. Following completion of this transaction, the group has assumed full responsibility for the GBP10.03 million development loan facility in place with Close Brothers Limited in relation to Brunswick House. Under the terms of the facility, the loan is repayable on 31 December 2016.
- 26 Apr 2016 08:09
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Empiric Student Property has acquired the freehold of a site on Trippet Lane, Sheffield, with planning permission for a 63 bed student accommodation development, at a cost of GBP750,000 (excluding fees).
The site is located in central Sheffield, within 100 metres of the University of Sheffield's North Campus and within walking distance of the Group's current developments in Sheffield, Portobello House and Provincial House. The 63 bed scheme will involve the demolition of the existing building and the development of a seven storey block housing 50 student apartments and associated communal facilities.
The company is currently negotiating with a developer on a forward funded development contract for the site, with a view to the development being completed by August 2017, in time for the 2017/18 academic year. Further information regarding the proposed project will be announced in due course.