Recently launched UK student housing REIT Empiric Student Property has acquired the freeholds of a portfolio of seven direct-let properties in Liverpool and Stoke-on-Trent.
Recently launched UK student housing REIT Empiric Student Property has acquired the freeholds of a portfolio of seven direct-let properties in Liverpool and Stoke-on-Trent.
The assets, which comprise a total of 502 student beds, were bought for a cash consideration of 拢22.8 mln (鈧�32 mln) as well as the assumption of existing debt on the properties of 拢18.8 mln, resulting in a total acquisition value of 拢41.6 mln.
The debt facility is provided by Santander at a margin of 2.5% above Libor with a remaining term of 4 years. Empiric said it plans to review the facility 'in due course in the wider context of the Group's overall gearing strategy'.
The holding companies of the seven properties have been acquired from Urban Sleep, which will continue to manage the operation of the properties on behalf of Empiric.
The properties are fully let for the 2014/15 academic year and are 92% pre-let across the portfolio for 2015/16.
Paul Hadaway, CEO of Empiric Student Property, commented: 'The acquisition of this portfolio from Urban Sleep represents an efficient deployment of equity capital in one transaction and provides Empiric with exposure to two new university cities with top 40 universities. The acquisition is in line with Empiric's investment criteria and returns profile.'
