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(Alliance News) - Empiric Student Property PLC said on Tuesday it had acquired the freehold of a property in Bristol, adding to its portfolio in the city for GBP19.0 million.
The London-based owner and operator of student accommodation will acquire from MacLaren Property Ltd the freehold of a new 92-bed purpose-built studio asset in Bristol's city centre. The deal from funded from its existing resource, and reflects a net initial yield of 4.8%.
Empiric said the acquisition has "significant reversionary potential for the forthcoming academic year, through identified opportunities to capture market rents as well as letting the commercial unit".
The property has a 100% occupancy rate for the current academic year. Empiric said the acquisition was in line with its strategy of driving operational performance and returns by "clustering" its property portfolio in cities serving key UK universities.
The property will add to its two existing assets in Bristol, and a third development due to be completed in time for the next academic year, at which time it will have a total of 404 beds in the city.
Empiric said that "persisting supply constraints" in the city have led to strong rental growth, which is expected to continue.
Chief Executive Officer Duncan Garrood said, "We are pleased to acquire this new purpose-built studio asset in a prime location in Bristol city centre, strengthening our presence in this key university city and ensuring that we are in an enhanced position to cater for the strong and increasing numbers of both domestic and international students wanting to attend the University of Bristol.
Empiric's share price was up 0.5% at 89.20 pence each in London on Tuesday morning.
By Elizabeth Winter; elizabethwinter@alliancenews.com
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