Empiric Student Property has acquired a new 92-bed purpose-built studio asset in Bristol city centre for £19.0m, reflecting a net initial yield of 4.75%.
The property, which was completed in September 2021, has 100% of the beds let for the current academic year. Empiric has two other operational assets in Bristol (159 beds), with a third in development (153 beds) that is due to be completed in time for the academic year 2022/23, in line with its strategy of driving operational performance and returns through clustering properties around key UK universities. Bristol has the 10th largest student population outside of London, and Empiric said it has increasing demand from domestic and international students wanting to attend the University of Bristol. This, it said, is supporting strong and increasing demand for high quality student accommodation, which, together with persisting supply constraints in the city, has led to robust rental growth, that is expected to continue.
The property, on Baldwin Street, is in a prime city centre location close to the University of Bristol and the company’s other assets in the city. The property is a new purpose-built construction, developed by McLaren Property, with an EPC B rating and BREEAM Very Good certified.
The property will be direct let through Empiric’s Hello Student in-house operating platform and brand.
Duncan Garrood, chief executive, said: “We are pleased to acquire this new purpose-built studio asset in a prime location in Bristol city centre, strengthening our presence in this key university city and ensuring that we are in an enhanced position to cater for the strong and increasing numbers of both domestic and international students wanting to attend the University of Bristol.
“We see significant opportunities to deliver operational efficiencies and enhanced income and capital returns from this asset over the short and longer term, supported by our Hello Student® brand and operating platform, our clustering strategy and the ongoing attractive demand/supply fundamentals in Bristol, in addition to letting the retail unit.”
ESP : Empiric Student Property buys £19m digs in Bristol