LONDON (Alliance News) - Empiric Student Property PLC on Monday said it has bought a new site in Bath and has agreed a new loan facility.
Empiric said it will pay GBP2.6 million to acquire 2 Oolite Road in Bath, a newly-constructed student accommodation site complete in May this year in time for the 2016-17 academic year.
It houses 31 beds and is located in a residential area on the university side of Bath city centre.
Empiric also said it has agreed a GBP32.8 million loan facility with AIB Group (UK) Ltd, a subsidiary of Allied Irish Bank. The facility is secured against five forward-funded assets on Empiric's books.
The development loan will be drawn down in agreed stages over the development period for the five assets, which are expected to be completed by July 2017. After this, the loan will convert into an investment loan, providing all the developments have reached practical completion.
The development loan will carry an interest rate of 2.8% over Libor per year, with the investment loan carrying a 1.8% over Libor rate.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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Empiric (ESP)