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24 December 2014
Empiric Student Property plc
("Empiric" or the "Company" or, together with its subsidiaries, the "Group")
Empiric completes acquisition of Willowbank development asset in Glasgow
The Board of Empiric Student Property plc (ticker: ESP) is pleased to announce that planning approval and listed building consent has been received to redevelop the former Willowbank Primary School ("Willowbank") into direct-let premium student accommodation, as originally announced on 8 August 2014 and as updated in the prospectus of the Company published on 30 October 2014. Consequently, the acquisition has been completed and ownership of the property has been transferred from London Cornwall Property Partners Limited ("LCPP") to Empiric (Glasgow) Limited. LCPP has received no economic benefit for its role in the transaction.
The Willowbank site will be developed through Empiric (Glasgow) Limited, via a 50:50 joint venture arrangement with Revcap Advisors Limited. Planning permission has been received to develop a scheme comprising 178 beds (increased from the 158 beds originally envisaged) in a mix of studio, two and three bed apartments. The development is targeted to be completed in time for the start of the 2016/17 academic year. As a result of the increased number of beds, the purchase price for the site has increased by £100,000 to £1,925,000 exclusive of VAT.
Following completion of the acquisition, the fronting agreement entered into by LCPP, Empiric and Empiric (Glasgow) Limited has been discharged. A revised guarantee has been entered into by the Company in favour of Glasgow City Council pursuant to the terms of which Empiric has guaranteed the payments and development obligations in relation to the Willowbank scheme up to an aggregate maximum capped amount of £4,000,000.
For further information on the Company, please contact:
Empiric Student Property plc | (via Newgate Communications) |
Paul Hadaway (Chief Executive) |
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Tim Attlee (Chief Investment Officer) |
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Michael Enright (Chief Financial Officer) |
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Akur Limited (Joint Financial Adviser) | Tel: 020 7493 3631 |
Tom Frost |
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Anthony Richardson |
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Siobhan Sergeant |
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Jefferies International Limited (Joint Financial Adviser and Broker) | Tel: 020 7029 8000 |
Gary Gould |
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Stuart Klein |
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Alex Collins |
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Newgate Communications (Financial PR) | Tel: 020 7680 6550 |
James Benjamin | Em: empiric@newgatecomms.com |
Clotilde Gros |
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Georgia Lewis |
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Further information on ESP can be found on the Company's website at www.espreit.co.uk.
Notes:
Empiric Student Property plc (incorporated in England & Wales) is an internally managed real estate investment trust ("REIT") investing in modern, premium, student accommodation, with a focus on quality and with assets generally in prime city central locations in top university cities and towns in the UK. The Company listed on the premium listing segment of the Official List of the Financial Conduct Authority and was admitted to trading on the main market for listed securities of the London Stock Exchange in June 2014.