Empiric Student Property plc deployed the proceeds from the Company’s October 2024 Equity Fundraise and the receipt of planning permission to add over 300 beds to Victoria Point, Manchester.
In line with the proposed use of proceeds set out in October 2024, we successfully completed the acquisition of Tatton House, Manchester, a 136-bed, all-studio scheme, acquired for €23.5m in December 2024. The property is well located, being less than 10-minute walk to the Manchester University campus whilst also opposite our existing Victoria Point Hub. This location allows us to unlock operational efficiencies and improve the low amenity offer currently available to residents of Tatton House. This operational PBSA asset is expected to deliver a 7% net initial yield from September 2025.
A second acquisition is under offer and is currently expected to conclude by the end of the first quarter of 2025, also in line with our deployment assumptions.
Preparatory works have begun at three existing sites earmarked for conversion to the Company’s Postgraduate product, with over €11.9m on track for investment during 2025. These refurbishments are expected to deliver unlevered IRRs in excess of 12%. In the meantime, proceeds have been applied in prepayment of a flexible debt facility.
A further update will be provided alongside the Company’s annual results on 13 March 2025.
Duncan Garrood, Chief Executive Officer of Empiric, commented: “Following the Company’s successful fundraising last year, we have been focused on strategically deploying the proceeds into growth opportunities, expanding our Manchester cluster through the addition of Tatton House and progressing our Postgraduate pipeline through the repositioning of existing buildings. These activities, in addition to the recent grant of planning permission at Victora Point, support our strategy of growing a portfolio of high-quality buildings in top-tier university locations where purpose-built student accommodation remains acutely undersupplied.”
Image source - Empiric Student Property plc.
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