Empiric Student Property has been busy in recent days, acquiring a development site in Huddersfield (Oldgate House, pictured) for £11m and a portfolio of five operational, direct-let, premium student accommodation properties in Lancaster and Leicester from CityBlock, comprising a total of 381 beds, bought for £26.5m – this is on top of the deal they did in Durham a couple of days ago.
In Huddersfield, the freehold site on Oldgate is located very close to the city centre and within a five minute walk of the main campus of the University of Huddersfield. The scheme comprises 179 beds across a mix of different size studios, together with communal space for students. The property is also within a 10 minute walk to Snow Island, another of the Group’s developments which is due to begin operations in September 2015. Once the two assets are operational, this will provide the Company with an opportunity for combining operations and achieving economies of scale. Forshaw Land and Property Group Limited will undertake the redevelopment of the property on behalf of Empiric, to the Company’s specifications. The full investment required for the development will be invested in stages against development milestones. As is typical for Empiric’s forward funded assets, the Company will receive an income return from the developer payable as a rental receipt during the development period. The property is scheduled for practical completion by summer 2016, in time for the 2016/17 academic year.
The five properties in Lancaster and Leicester are being acquired from CityBlock, which will continue to manage the operation of the properties on behalf of Empiric. The properties have an excellent occupational track record and were fully let for the 2014/15 academic year, with 62% already pre-let across the portfolio for 2015/16. The tenant mix is consistent with that across Empiric’s existing portfolio. The Lancaster portfolio comprises three blocks located on Penny Street, in close proximity to Royal Lancaster Infirmary and a short walk from the city centre. The Lancaster University campus and the Lancaster campus of the University of Cumbria are both readily accessible. Lancaster has a student population of around 22,700, (HESA 13/14) of which approximately 25% are post-graduate and 25% international. The city prides itself on its first-rate network of cycle tracks and a pedestrianised city centre, as well as an efficient bus service, providing easy access to its excellent shopping and entertainment facilities. CityBlock 1 (constructed in 2003) is a low-rise, multi-storey block which provides a total of 30 beds comprising 30 en-suite bedrooms with shared kitchen and communal areas. There is also a ground floor retail unit. CityBlock 2 (constructed in 2004) is a low-rise, multi-storey block which provides a total of 77 beds comprising 52 en-suite bedrooms with shared kitchen and communal areas and 25 studios. There are also two retail units that are let to Cartridge World and Subway on the ground floor level. CityBlock 3 (constructed in 2012) is a low-rise, multi-storey block which provides a total of 100 beds comprising 57 en-suite bedrooms with shared kitchen and communal areas, 10 studios and 33 en-suite beds in five townhouses. There is a retail unit let to Sainsbury on the ground floor.
The Leicester portfolio comprises two connected blks located on Careys Close, immediately adjacent to De Montfort University and within walking distance from the University of Leicester. The properties are also very close to the centre of Leicester, a city which has a strong ethnic diversity with a mix of cultural and entertainment attractions. Leicester is popular with students, who number around 30,000, as it is easy to get around and relatively inexpensive to live, with facilities such as Europe’s largest outdoor market and many independent, as well as usual high street, shops. CityBlock 1 (constructed in 2009) is a low-rise, multi-storey block which provides a total of 98 beds comprising 91 en-suite bedrooms with shared kitchen and communal areas and seven studios. There is also a ground floor retail unit about to be let to a local supermarket and a rooftop telecoms lease already in place. CityBlock 2 (constructed in 2010) is a low-rise, multi-storey block which provides a total of 76 beds comprising 65 en-suite bedrooms with shared kitchen and communal areas and 11 studios. It also has a ground floor retail unit which is currently vacant.
ESP : Empiric Student Property acquisition spree continues