Prospectus

The investment objective of the Company is to provide Shareholders with regular, sustainable and growing long-term dividends (which it will seek to grow at least in line with the RPI inflation index) together with the potential for capital appreciation over the medium to long term.



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ESP(ESP) Fundamentals

I quite like this one. Forecast divi yield around the 5.5% level. Want to put it in my stock ISA so will have to wait for 6th Apr.

StockMarketWire.com
Empiric Student Property has acquired student accommodation properties in Reading and Manchester.

In Reading, Empiric has acquired the freehold of an 83 bed, premium student accommodation property in Reading for a consideration of GBP13.0 million (excluding costs) from the developer, Bywater Properties.

Saxon Court, the group's first acquisition in Reading, was newly built for the 2015/16 academic year to a high specification. The property is an all-studio scheme with communal facilities, plus a basement car park, which is let for a five-year term to a local operator. The property is located in central Reading, within a short walk of the railway station and the London Road and Whiteknights campuses of the University of Reading.

In Manchester, the group has acquired the 145 year leasehold of a 117 bed, premium student accommodation property in Manchester for £10.25 million (excluding costs) from Accrue Capital.

As well as the two main universities, The University of Manchester and Manchester Metropolitan University, the city is home to several smaller institutions such as the Royal Northern College of Music. The city, therefore, has the second highest student population outside London.

Ladybarn House was built in 1994 by The University of Manchester (which remains the freeholder) and was subsequently comprehensively refurbished by Accrue Capital in 2012. The property comprises 117 beds over three floors in a mix of studios, 1-bed apartments and 4-bed en-suite apartments, with communal facilities. The property also has four ground floor retail units which are fully let. The property is located in the popular student suburb of Fallowfield, south Manchester, opposite The University of Manchester's residential Fallowfield Campus.

StockMarketWire.com
Empiric Student Property has acquired the land and entered into a forward funded development agreement for a 115 bed, premium student accommodation development in York for a total funding commitment of GBP11.1 million.

The property, Empiric's first in York, is located between York city centre and the University of York, and is approximately 1.5 miles from York St John University.

According to the latest HESA statistics (for the 2014/15 academic year), the total full-time student population in York was over 20,000, with 20.5% international students and 17.8% postgraduates. The University of York is ranked 15th in The Times Good University Guide 2016.

The Lawrence Street development comprises the redevelopment of two existing listed buildings, together with a newly built wing, to create a premium student accommodation scheme with a mix of studios and flats with one, two, three and five bedrooms, as well as communal facilities. The existing buildings will be retained, repaired and refurbished in accordance with the Listed Building Consent which has been granted.

StockMarketWire.com
Empiric Student Property has acquired the freehold of a 44 bed student accommodation property in Oxford for GBP4.5 million (excluding costs).

Stonemason House was built in 2011 as a new build scheme in time for the 2011/12 academic year. The property comprises 44 beds in a mix of four, five, six and seven-bed en-suite apartments. The property is located just off Cowley Road, a vibrant and multi-cultural area of Oxford, with bars, restaurants and boutique shops, popular with students from both universities.

The property has been acquired from a local housing association and since completion in 2011 has been leased to St Cross College of The University of Oxford. The current three-year lease is due to expire in September 2017. The property will be managed through the Company's Hello Student operating platform.

Chief executive Paul Hadaway said: "Stonemason House is our first acquisition in Oxford, a city synonymous with higher education in the UK. The property benefits from an existing lease with St Cross College, guaranteeing full occupancy for the term of the lease. We are very pleased to have been able to acquire this property in a market with limited private sector, purpose-built student accommodation. This acquisition is in line with Empiric's investment criteria and returns profile."

StockMarketWire.com
Empiric Student Property has agreed a new fixed rate term loan facility of GBP80 million arranged by Cornerstone Real Estate Advisers Europe LLP, a member of the MassMutual Financial Group.

The facility is secured against a portfolio of 20 operating assets, held as a lending group through a wholly owned subsidiary, Empiric Investments (Four) Limited.

The facility is available to draw down in full, subject to the fulfilment of certain conditions precedent, until 12 April 2016. It is repayable 12 years from the date of the initial draw down and has a fixed all in rate of 3.24 per cent., interest only, throughout the term. This rate is fixed up to a loan to value ratio of 55 per cent.

The amounts drawn down under the Facility will be segregated and non-recourse to the Company. Part of the Facility will be used to refinance GBP37.2 million of debt which has been repaid to Santander and Royal Bank of Scotland, with the balance of £42.8 million (before expenses) to be used to fund further acquisitions.

StockMarketWire.com
Empiric Student Property has acquired the long leasehold - 999 years from March 2007 - of a 561 bed scheme in Manchester for GBP29.5 million (excluding costs) from MCR Property Group. 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.

Chief executive Paul Hadaway said: "With its large student population - the third largest in the UK with 61,990 full-time students in 2014/15 according to HESA statistics - we are pleased to have made this further significant purchase in Manchester, taking our presence in the city to 765 beds. This large site with low density provides the opportunity for further development, if appropriate, including communal facilities to create a purpose-built student hub. This acquisition is in line with Empiric's investment criteria and returns profile."

Empiric also announced that it has acquired the 50% share in Empiric (Southampton) Limited previously owned by an investment fund affiliated with Revcap Advisors Limited. As a result, the group now owns 100% 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 GBP4.95 million 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 GBP10.03 million 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.

StockMarketWire.com
Empiric Student Property has acquired the freehold of a site on Trippet Lane, Sheffield, with planning permission for a 63 bed student accommodation development, at a cost of GBP750,000 (excluding fees).

The site is located in central Sheffield, within 100 metres of the University of Sheffield's North Campus and within walking distance of the Group's current developments in Sheffield, Portobello House and Provincial House. The 63 bed scheme will involve the demolition of the existing building and the development of a seven storey block housing 50 student apartments and associated communal facilities.

The company is currently negotiating with a developer on a forward funded development contract for the site, with a view to the development being completed by August 2017, in time for the 2017/18 academic year. Further information regarding the proposed project will be announced in due course.

StockMarketWire.com
Empiric Student Property has exchanged contracts to acquire, subject to planning, the freehold of a site on Well Street, Exeter, at a cost of GBP1.5 million (excluding fees). The vompany is in the process of applying for planning permission with Exeter City Council for a premium student accommodation development on the site, comprising approximately 68 beds.

The exact mix of room types is still to be determined but it is anticipated that the development will be completed in time for the 2017/18 academic year and, like the Group's other four properties in Exeter, will be managed by Collegiate AC. The site is located within a 10 minute walk to the University of Exeter's main campus and is in close proximity to the Group's other schemes in the city. On completion of this and the Group's other developments in the city, Empiric will own c.411 operating beds in Exeter, serving approximately 2% of the full-time student population. On receipt of planning permission, the Company will enter into an appropriate development contract.

Nomination Agreement with Falmouth University

The Board of Empiric Student Property plc (ticker: ESP), the owner and operator of modern, premium student accommodation across the UK, is pleased to announce that the Group has entered into a nomination agreement with Falmouth Exeter Plus ("FX Plus"), which delivers all shared services, including accommodation, to the students of Penryn Campus, in respect of the Group's existing 137 bed operating property in Falmouth, Maritime Studios (the "Nomination Agreement"). The duration of the Nomination Agreement is for three years from commencement in September 2016.

Under the terms of the Nomination Agreement, Maritime Studios will be directly let to students from Falmouth University, which FX Plus will provide and the Group will benefit from a guarantee of 100% of the annual fee income for the available accommodation (the "Annual Fee") for the duration of the Nomination Agreement. The Annual Fee, which has been agreed at current market rates, will be subject to an annual increase of between 2 to 5%, with reference to the Retail Price Index.

Paul Hadaway, Chief Executive of Empiric Student Property plc, commented:
"The Nomination Agreement provides Empiric with committed income for its current operating Falmouth property for a three-year period at current market rates, subject to annual increases, as well as providing Falmouth University students with access to premium student accommodation. We look forward to a strong working relationship with FX Plus going forward. This is the Group's second nomination agreement and, as with the previous agreement for the Group's assets in Bath, this remains a direct-let model with the added benefit of the Annual Fee being underwritten."

Dividend Declaration

The Board of Empiric Student Property plc (ticker: ESP), the owner and operator of premium student accommodation across the UK, has declared a third interim dividend for the financial year ending 30 June 2016 of 1.5 pence per Ordinary Share in respect of the quarter ended 31 March 2016, payable on or around 23 June 2016 to Ordinary Shareholders on the register on 10 June 2016. The ex-dividend date will be 9 June 2016.

This dividend will be paid as an ordinary UK dividend ("non-PID").

The Company confirms an annual dividend target of at least 6 pence per Ordinary Share for the financial year ending 30 June 2016. Thereafter, dividends are expected to grow by not less than the RPI inflation index (1).

StockMarketWire.com
Empiric Student Property has acquired the freeholds of three operational, direct-let, premium student accommodation properties in Leicester, comprising a total of 106 beds, for a consideration of GBP8.8 million (excluding acquisition costs).

Bede Park (completed in 2012) is a conversion of a 1900s two storey industrial unit, with a further two floors added. The property provides a total of 59 beds, comprising 49 studios and five two-bedroom apartments, as well as communal facilities including a large gym, cinema room and a communal living area. There is a ground floor retail unit, which is currently let to The Co-operative food store. Bede Park is located to the west of the Soar River on a busy pedestrian route between De Montfort University, which is a ten minute walk away, and the popular Narborough Road area. 136-138 New Walk (completed in 2013) and 160 New Walk (completed in 2015) are both conversions of three storey Victorian mid-terraces, which have been extended to the rear and are all-studio schemes with 30 beds and 17 beds, respectively. The properties each offer communal facilities, including a gym and cinema room. Located close to the University of Leicester in an attractive area, these New Walk properties are on a pedestrian-only road linking Victoria Park to the city centre. The properties have an excellent occupational track record and are fully let for the 2015/16 academic year, with 90% already pre-let across the portfolio for 2016/17. The three properties are being acquired from a Leicester-based property company, which will continue to manage the operation of the properties on behalf of Empiric until the end of the current academic year.

Chief executive Paul Hadaway said: "Home to both the University of Leicester and De Montfort University, Leicester had a full-time student population of over 30,000 in 2014/15 (according to the latest available HESA data), of which some 26.5% are international students and almost 20% are postgraduates. This acquisition brings the beds owned in Leicester by Empiric to 280 and we are exploring further opportunities in this popular student city. This acquisition is in line with Empiric's investment criteria and returns profile."

Empiric acquires student accommodation property in Leeds: Pennine House

The Board of Empiric Student Property plc (ticker: ESP), the owner and operator of premium student accommodation across the UK, is pleased to announce that the Group has acquired the freehold of a 127 bed student accommodation property in Leeds for £17.8 million (excluding costs).

Pennine House was developed by the current management of Empiric (prior to the formation of the Company) on behalf of the vendor, British Airways Pension Trust Limited ("British Airways"), in time for the 2013/14 academic year. Neither Empiric nor any of its management team has held any interest in, or been involved with the operation of, Pennine House for over twelve months.

The property comprises 127 beds in a mix of studios and two-bed en-suite apartments across eight floors together with high quality communal facilities including a gym, cinema room, study rooms and a common room. The property also includes a ground floor and basement commercial unit currently let to Living Ventures, trading as "Gusto", one of fifteen Italian bar/restaurants in the UK, on a lease extending to 2041, with five yearly rent reviews, commencing in March 2021.

The property is located on Russell Street, between Leeds train station and the two main universities, the University of Leeds and Leeds Beckett University, both of which are within 10 minutes' walk. It is also a short walk to one of Empiric's other Leeds assets, Algernon Firth. This asset will continue to be managed by Collegiate, alongside the Group's other Leeds assets, Algernon Firth and St Mark's Court, both of which are already nearly fully let for the 2016/17 academic year.

Historically, the property has let well, although in the 2015/16 academic year lettings were impacted by the construction of a major new hotel next door. Construction of the hotel is scheduled to be completed in October 2016, with external works being completed this month. Collegiate and the Group's operations team are confident that lettings for the 2016/17 academic year will return to previous levels and, in any event, the Group will benefit from a structured rental guarantee from the vendor for the coming academic year.

Paul Hadaway, Chief Executive of Empiric Student Property plc, commented:

"Pennine House is our third acquisition in Leeds, a Russell Group university city and home to the University of Leeds (ranked 14th in The Times Good University Guide) and Leeds Beckett University, with a full-time student population of over 50,000 (for 2014/15, being the latest information available from HESA). Tim Attlee and I know the property extremely well, having developed it on behalf of British Airways, prior to forming Empiric. The location and quality of the building make it an excellent fit with the rest of Empiric's portfolio. Following this acquisition, the Group owns, in aggregate, 323 beds in Leeds, all of which are operational. This acquisition is in line with Empiric's investment criteria and returns profile."

A buying opportunity coming up I think.

StockMarketWire.com
Empiric Student Property believes the impact of the EU referendum on the operations of the group will be limited.

It says EU students represent only 6% of all full-time students in the UK, due primarily to the historical cap on the number of EU (including UK) students, as well the higher overall cost of studying in the UK (albeit subsidised) compared to continental Europe.

Therefore, the UK's higher education system is not dependent on this portion of the market.

It adds: "While students from the EU may be subject more stringent visa requirements and higher fees, there is strong demand from other international students and the potential long term devaluation of Sterling would make the UK more affordable for international students. There is also a significant increase in expectations of an interest rate fall which would be to our benefit. Therefore, we believe that the higher education sector and, by implication, the student accommodation sector will prove resilient, a view echoed by property market experts such as CBRE (the group's property valuers) and Knight Frank."

The company's property portfolio currently comprises 7,265 beds contracted, either operating or under development, across 75 assets in 29 top university cities and towns in the UK.

By the start of the 2016/17 academic year in September, it anticipates that a total of 65 of these assets (5,853 beds) will be operational following the practical completion of a number of assets under development.

StockMarketWire.com
Empiric Student Property (ESP) acquired the freehold of a 31 bed student accommodation property in Bath for £2.6 million, excluding costs.

2 Oolite Road is a newly constructed student accommodation asset that was completed in May 2016 for the 2016/17 academic year.

The property comprises 31 beds in a mix of four, five and six bed en-suite apartments and is located in a popular residential area on the university side of Bath city centre, with local bus routes that provide easy access to the city and the University of Bath.

The property was acquired from IESIS, an established local developer and operator of purpose-built student accommodation in Bath and Bristol, which is currently developing the 1-3 James Street West in Bath on behalf of Empiric.

Hello Student will be responsible for managing the Oolite Road scheme.

The group also entered a nomination agreement with the University of Bath in respect of the property.

The duration of the nomination agreement is for five years from commencement in September 2016 over which time the beds will be directly let at current market rates to students provided by the University of Bath, on the same terms as the nomination agreement in place for the group's four other assets in Bath.

Empiric Student Property chief executive Paul Hadaway said: "We are very pleased to have acquired our fifth student accommodation property in Bath.

"At the start of the 2016/17 academic year, we will have a total of 385 beds in operation in Bath, all of which are subject to nomination agreements with the University of Bath.

"As a UNESCO World Heritage city, there are limited opportunities for suitable development sites in Bath, which has two key universities with increasing student numbers and applications.

"Further, the provision of this purpose-built accommodation ensures that the existing limited housing stock in the city is not under additional pressure for student accommodation.

"This acquisition is in line with Empiric's investment criteria and returns profile."

Dividend Declaration

The Board of Empiric Student Property plc (ticker: ESP), the owner and operator of premium student accommodation across the UK, has declared a final interim dividend for the financial year ended 30 June 2016 of 1.5 pence per Ordinary Share in respect of the quarter ended 30 June 2016, payable on or around 17 August 2016 to Ordinary Shareholders on the register on 5 August 2016. The ex-dividend date will be 4 August 2016.

This dividend will be paid as an ordinary UK dividend ("non-PID") and takes the total paid in respect of the year to 30 June 2016 to 6 pence per Ordinary Share, in line with the Company's stated target.

StockMarketWire.com
Empiric Student Property has acquired the freeholds of three operating properties, two in London and one in Exeter, with a total of 213 beds, for an aggregate cash consideration of £21.5 million (excluding acquisition costs) from CBRE Global Investors.

These are:
- Isca Lofts, Exeter - £4.73 million
Isca Lofts, Longbrook Street, Exeter, is a direct-let student accommodation property with 71 beds across five studios and 66 en-suite bedrooms, plus management offices, onsite laundry and storage facilities. There is a retail unit on the ground floor which was sold in 2009 on a long leasehold (125 years) and which pays a peppercorn ground rent and service charge. The property, which was converted in 2008 from a 1920s former warehouse, is well located in Exeter city centre, close to Empiric's other assets (facilitating operating economies of scale) and within a 12 minute walk to the University of Exeter campus. The property, which is currently managed by Universal Student Living ("USL"), was fully let for 2015/16 and is fully pre-let for the 2016/17 academic year. The property will be operated by Collegiate AC, which operates the Group's other Exeter properties, from January 2017. - Grosvenor Hall, Twickenham, London - £6.18 million

Grosvenor Hall
Grosvenor Road, Twickenham, is a direct-let student accommodation property with 72 beds across one studio and 71 bedrooms arranged in multi-bed apartments plus management offices, laundry facilities, storage and parking which is let to students. The property was converted from offices in 2011 and is located within a five minute walk of Twickenham mainline train station which is a 20 minute direct journey into central London. The property is also a 20 minute walk or 10 minute bus ride to St Mary's University in Twickenham. St Mary's University has a well established reputation for excellence in Education, Sport and Theology, with over 5,000 students, of which over a quarter are postgraduates.

The property is currently managed by USL and will be migrated onto the Hello Student� operating platform from the beginning of 2017. The property was fully let for 2015/16 and is fully pre-let for the 2016/17 academic year, benefiting from an agreement with St Mary's University to underwrite the income on nearly half of the beds to meet its clearing requirements and a nominations agreement with LAL Language School for nine of the remaining beds.

- Francis Gardner Hall, West Hampstead, London - £10.59 million
Francis Gardner Hall, West End Lane, West Hampstead, has 70 beds, of which 65 are en-suite, arranged in multi-bed apartments and communal facilities including a gym, a cinema room and a games room. The building was originally constructed in around 1890 and was converted and refurbished in 2004/05. The property is located within a five minute walk to West Hampstead station (serviced by the Jubilee underground line, the Overground line and Thameslink) and under 10 minutes' walk to Kilburn Park station (on the Bakerloo underground line), providing easy access into central London.

The property is currently let to young professionals on a six-month assured shorthold tenancy basis and is currently 97% let. It will remain under the management of the incumbent, Springboard Urban, but will be migrated onto the Hello Student� operating platform at the beginning of 2017, at which point the property will start to be operated as student accommodation.

Chief executive Paul Hadaway said: "The acquisition of this portfolio increases our presence in Exeter to 414 beds across five properties and adds a further 142 beds in London, where the Group owns one other property, Halsmere Studios in Camberwell with 79 beds. Empiric has a limited presence in London in relation to the size of the full-time student population in the city, as we believe that, typically, assets in the regions represent better investment value. However, as these acquisitions demonstrate, we will continue to acquire properties in London that meet our investment criteria and which should provide good returns going forward. This acquisition is in line with Empiric's investment criteria and returns profile."

Numis today downgrades its investment rating on Empiric Student Property Plc (LON:ESP) to hold (from add) and cut its price target to 118p (from 124p).

Record university offers as top A-level grades slip

Yes. I have never heard of essay mills, which are becoming a real problem for the Universities and schools. Lots of Internet aids, yet standards slip!