LONDON (Alliance News) - Empiric Student Property PLC said Wednesday it has entered into a nomination agreement with the University of Bath for its portfolio of properties in Bath to be let to students by the university.
The student accommodation provider said the nomination agreement involves three of its operating properties, namely Piccadilly Place, Canal Bridge and Widcombe Wharf, and two forward committed assets due for completion in September, 1-3 James Street West and James House, with all five totaling 354 beds.
Empiric said the agreement will run for five years from the start date in September for all the properties except for James House, which is covered under the agreement for one year only.
Empiric added the agreement guarantees 100% of the annual fee income for the available accommodation, with this fee agreed at current market rates and subject to an annual increase of between 2.0% and 5.0%.
"The nomination agreement provides the University of Bath with dedicated access to much needed premium accommodation for its students, and provides Empiric with committed income for the Bath portfolio for a five year period. While the focus of Empiric remains on direct-let student accommodation, we will assess the dynamics of each particular market and implement the most appropriate rental strategy," said Chief Executive Paul Hadaway.
Shares in Empiric were up 0.2% at 109.94 pence on Wednesday.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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Empiric (ESP)