Empiric Student Property has acquired the long leasehold (999 years from March 2007) of a 561 bed scheme in Manchester for £29.5m.
Victoria Point, Manchester was constructed in 2009 by the vendor as a private residential scheme comprising apartments and duplexes across six separate blocks of accommodation on a 3.5 acre site. The property has been let entirely to students since it was built and is located in the Victoria Park area of Manchester, a popular student area convenient for The University of Manchester, Manchester Metropolitan University and the Royal Northern College of Music.
The 561 beds are set out in a mix of two, three and four bedroom apartments with nine three bedroom duplexes. The accommodation has large bedrooms, fully fitted kitchens and family-sized bathrooms. The property also benefits from 197 car parking spaces and landscaped gardens. There is scope to upgrade the accommodation and ancillary facilities, on a staged basis, with the potential to enhance rental growth.
Victoria Point has an excellent occupational track record, is fully let for the 2015/16 academic year and is letting well for 2016/17. The property, which is in close proximity to the Group’s Welsh Baptist Chapel forward funded development, will be managed through the Hello Student(R) platform.
At the same time, Empiric Student Property has acquired the 50 per cent. share in Empiric (Southampton) Limited previously owned by an investment fund affiliated with Revcap Advisors Limited. As a result, the Group now owns 100 per cent. of the interest in Brunswick House in Southampton.
In July 2014, the Group entered into the 50:50 joint venture arrangement with Revcap to redevelop Brunswick House. The project was completed in September 2015 and comprises 173 beds made up of a mix of studios and one, two and three bed apartments, together with communal facilities, and four commercial units. The property is currently fully let and bookings for the 2016/17 academic year are well ahead of bookings at this time last year.
Empiric has agreed to pay Revcap £4.95m as an initial payment calculated in accordance with the terms of the joint venture arrangements. A further payment will become due within 18 months, the quantum of which will be determined at the time based on certain specified parameters.
Following completion of this transaction, the Group has assumed full responsibility for the £10.03m development loan facility in place with Close Brothers Limited in relation to Brunswick House. Under the terms of the facility, the loan is repayable on 31 December 2016.
ESP : Empiric buys accommodation blocks in Manchester and Southampton