Last checked at 14 Dec 2016 07:00
14 December 2016
Empiric Student Property plc
("Empiric" or the "Company" or, together with its subsidiaries, the "Group")
New Fixed Rate Term Loan Facility of £40 million
The Board of Empiric Student Property plc (ticker: ESP), the owner and operator of modern, premium student accommodation across the UK, is pleased to announce that the Group has agreed a new £40 million extension facility to its existing £80 million fixed rate term loan facility (together the "Amended and Restated Facility") arranged by Barings Real Estate Advisers, a member of the MassMutual Financial Group. The Amended and Restated Facility is now secured against a portfolio of 25 operating assets, held as a lending group through a wholly owned subsidiary, Empiric Investments (Four) Limited.
The new £40 million facility is expected to be drawn down in full on 16 December 2016. The Amended and Restated Facility is repayable in April 2028. The new £40 million extension facility has a fixed all in rate of 3.64 per cent., interest only, throughout the term. This rate is fixed up to a loan to value ratio of 55 per cent. This provides a fixed all in blended rate of 3.37 per cent. for the Amended and Restated Facility.
The amounts drawn down under the Amended and Restated Facility will be segregated and non-recourse to the Company.
The new £40 million facility will be used to fund further investments in both operating assets and forward funded projects.
Following draw down of the new £40 million facility, the estimated loan to value ratio for the Company will be approximately 30.5 per cent. (30 June 2016: 22.7 per cent.). In accordance with the Company's investment policy, the Company will maintain a conservative level of aggregate borrowings, targeting a level of 35 per cent. but no more than 40 per cent. of the gross asset value of the Company (calculated at the time of draw down).
Strategic advice on the structure and assistance in arranging the debt was provided by JCRA Group.
Paul Hadaway, Chief Executive of Empiric Student Property plc, commented:
"This extended long term facility helps the Group to maintain our low overall cost of borrowing and further extend our average unexpired loan term. The Amended and Restated Facility also provides further debt resource to help support our growth plans and business model. We are pleased to have built on and extended our excellent working relationship with Barings, one of the largest global real estate investment managers and debt providers."
For further information on the Company, please contact:
Empiric Student Property plc | (via Newgate below) |
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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Newgate (PR Adviser) | Tel: 020 7680 6550 |
James Benjamin | Em: empiric@newgatecomms.com |
Zoe Pocock |
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Lydia Thompson |
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Further information on Empiric can be found on the Company's website at www.empiric.co.uk.
Notes:
Empiric Student Property plc is a leading provider and operator of modern, direct-let, premium student accommodation across the UK. Investing in both operating and development assets, the Company focuses on quality, with assets generally in prime central locations in top university cities and towns in the UK, attracting international students and/or those studying beyond first year, in particular, postgraduates. For the 2015/16 academic year, Empiric's customer base comprises 69% international students from 98 countries. 78% of the Company's customers are students beyond their first year of study.
The Company, an internally managed real estate investment trust ("REIT") incorporated in England and Wales, 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.