Last checked at 6 Apr 2016 07:00
6 April 2016
Empiric Student Property plc
("Empiric" or the "Company" or, together with its subsidiaries, the "Group")
Nomination Agreement with University of Bath
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 entered into a nomination agreement with the University of Bath (the "Nomination Agreement") in respect of the Group's three operating properties (Piccadilly Place, Canal Bridge and Widcombe Wharf) and two forward committed assets due for completion in September 2016 (1-3 James Street West and James House) in Bath. The duration of the Nomination Agreement is for five years from commencement in September 2016 (except for the 141 studios at James House which are covered under the Nomination Agreement for one year from commencement).
Under the terms of the Nomination Agreement, the Group's portfolio in Bath (totalling 354 beds for the 2016/17 academic year) will be let to students provided by the University of Bath, which will guarantee 100% of the annual fee income for the available accommodation (the "Annual Fee") for the duration of the Nomination Agreement. The Annual Fee, which has been agreed at current market rates, will be subject to an annual increase of between 2-5%, with reference to the Retail Price Index.
Martyn Whalley, Director of Estates at the University of Bath, commented:
"We are pleased to have secured access to these beds on behalf of University of Bath students. We recognise the importance our students place on somewhere to live which is comfortable, secure and conducive to effective study. We believe that Empiric understands these requirements and that our students will appreciate the quality of accommodation on offer."
Paul Hadaway, Chief Executive of Empiric Student Property plc, commented:
"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. We look forward to a strong working relationship with the University of Bath going forward. 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."
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 |
Alex Shilov |
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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.