LONDON (Alliance News) - Student accommodation operator Empiric Student Property PLC on Thursday said it has bought student accommodation property Pennine House in Leeds for GBP17.8 million.
Empiric said Pennine House is a 127-bed student accommodation property, and was developed by the current management team of Empiric, prior to the formation of the company, on behalf of the vendor British Airways Pension Trust Ltd, in time for the 2013,14 academic year.
"Neither Empiric nor any of its management team has held any interest in, or been involved with the operation of, Pennine House for over twelve months," the company said.
The property comprises of a mix of studios and two bed en-suite apartments across eight floors, and includes a ground floor and basement commercial unit currently let to restaurant and bar group Living Ventures Group. The property is located on Russell Street, between Leeds train station and the two main universities, the University of Leeds and Leeds Beckett University.
Empiric said the property has been well let historically, although in the 2015/16 academic year lettings were impacted by the construction of a major new hotel next door. Construction of the hotel is scheduled to be completed in October, however, with external works being completed this month, Empiric said, and it is confident that lettings for the 2016/17 academic year will return to previous levels.
In any event, the group will benefit from a structured rental guarantee from the vendor for the coming academic year, Empiric said.
"The location and quality of the building make it an excellent fit with the rest of Empiric's portfolio. Following this acquisition, the group owns, in aggregate, 323 beds in Leeds, all of which are operational. This acquisition is in line with Empiric's investment criteria and returns profile," said Chief Executive Paul Hadaway.
Shares in Empiric were flat at 110.06 pence on Thursday morning.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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Empiric (ESP)