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

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!

StockMarketWire.com
Empiric Student Property has acquired the freehold of a 79 bed student accommodation property in Canterbury for £9.2 million, excluding costs.

Pavilion Court was developed by the vendor, Pavilion Property Group, for the 2013/14 academic year. The property comprises 79 beds in a mix of studios and one, two, three and four-bed apartments.

The property also includes a ground floor commercial unit currently let to Sainsbury's on a lease extending to 2027, with the next rent review due in February 2017.

The property is located on St Dunstan's Street in central Canterbury. The University of Kent is a 20 minute walk away and there is a regular university bus which stops outside the property. Canterbury Christ Church University is a 15 minute walk away, through the city centre.

The property has let well historically, being 100% let for both the 2014/15 and 2015/16 academic years, and is letting in line with Empiric's expectations for 2016/17. Hello Student will be responsible for lettings and management of the property, which, to date, has been marketed by a local estate agent on behalf of the vendor.

StockMarketWire.com
Empiric Student Property has agreed a new loan facility of £30.63 million with The Royal Bank of Scotland.

The facility is secured against a portfolio of five forward funded assets, held as a lending group through a wholly owned subsidiary, Empiric Investments (Five) Limited.

The facility is a development loan with each of the properties allocated a loan limit which will be drawn down in agreed stages over the development period of the property.

The facility will convert into an investment loan for each development, separately, providing that, inter alia, such development has reached practical completion. The amounts drawn down under the facility will be segregated and non-recourse to the company.

In accordance with the company's investment policy, the company will maintain a conservative level of aggregate borrowings, targeting a level of 35% but no more than 40% of the gross asset value of the company (calculated at the time of draw down).

StockMarketWire.com
Empiric Student Property posts an operating profit of £30.0 million for the year to the end of June (2015: £12.6 million). Revenues of £21.6m were up from £8.3m and gross annualised rent increased to £33.1m from £18.4m.

Basic net asset value per share rose to 105.4 pence - 2.1% up on a year ago and net of all property acquisition costs.

Total return of the group was 4.6% for the year, compared with -8.29% for the FTSE All Share REIT Index for the same period. The group's total return was negatively affected by the volatility in the market following the EU referendum which caused the share price to drop but it has since recovered.

Chairman Baroness Dean of Thornton-le-Fylde said: "At the time of this report, the country is still digesting the outcome of the EU referendum held in June 2016.

"While we cannot currently predict how the result of the referendum will impact on the country and the economy, we know that the UK Government remains committed to promoting UK higher education internationally, both in the EU (which represents only 6% of all full-time students in the UK) and further afield, in order to maintain the world-class reputation of our universities.

"With the supply/demand fundamentals of the sector persisting, Empiric continues to be well positioned with our diversified property portfolio delivering further rental growth and investors are also expected to benefit from the potential value to be added from our developments completing, our attractive investment pipeline and through our Hello Student operating platform and brand.

"Empiric has grown substantially and the experience, knowledge and commitment of the whole team, with the support of the Board, provides a solid base for the future of the Company as we work towards our proposed 2025 Plan."

Empiric acquires a portfolio of five student accommodation assets in Exeter, Leicester and Portsmouth

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 freeholds of five operating properties, one in Exeter, two in Leicester and two in Portsmouth, with a total of 464 beds, for an aggregate cash consideration of £26.69 million (excluding acquisition costs) from assets managed by LaSalle Investment Management.

All the properties were fully let for the 2015/16 academic year and are 100% pre-let for the 2016/17 academic year. The operations are currently managed by Campbell Property which will continue to manage the properties on behalf of the Group before operations are integrated onto the Hello Student® operating platform.

Bishop Blackall School (£8.02 million) - Exeter
Bishop Blackall School, Exeter, was converted in 2011 from an Edwardian school and headmaster's house into a direct-let student accommodation property with 113 beds across a mix of two to eight bedroom apartments, each of which has its own kitchen and living area. The property is a 10 minute walk to the University of Exeter campus and seven minutes from the city centre. It is within easy reach of Empiric's six other properties in the city, facilitating operational economies of scale.

The Hosiery Factory (£5.61 million) and The Shoe and Boot Factory (£8.86 million) - Leicester
The Hosiery Factory, Leicester, which was converted in 2015, is a direct-let student accommodation property with 107 beds across a mix of three to nine bedroom apartments, each of which has its own kitchen and living area.

The Shoe and Boot Factory, Leicester is a direct-let student accommodation property with 173 beds across a mix of four to eight bedroom apartments, each of which has its own kitchen and living area. The building was converted from the original factory in 2013 and retains many of the original features. Two new build structures have created a courtyard amenity space.

The properties, which are located opposite each other, are well situated in the city centre, a three minute walk to De Montford University and a 15 minute walk to the University of Leicester, and within easy reach of Empiric's other five properties in the city, facilitating operational economies of scale.

Elm Grove Library (£1.11 million) and Kingsway House (£3.09 million) - Portsmouth
Elm Grove Library, Portsmouth, which was converted from a former library building in 2012, is a direct-let student accommodation property with 19 beds across a mix of three to five bedroom apartments, each of which has its own kitchen and living area.

Kingsway House, Portsmouth, is a direct-let student accommodation property with 52 beds across a mix of three, four, seven and eight bedroom apartments, each of which has its own kitchen and living area. The building was converted from a former NHS office building in 2014 and has been redesigned to create a central living area, with the original concrete cladding having been replaced with a more modern façade.

The properties, which are located opposite each other, are situated in the student hub in Southsea, a 15 minute walk to the University of Portsmouth and a 20 minute walk to the Gunwharf Quays shopping centre.

Paul Hadaway, Chief Executive of Empiric Student Property plc, commented:
"The acquisition of this portfolio increases our presence in Exeter to approximately 595 beds across seven properties, in Leicester to 560 beds across seven properties and in Portsmouth to 354 across four properties. The purchase of small, complementary portfolios of properties enables us to deploy the Group's capital in a more cost efficient manner, the benefit of which accrues to our shareholders. This acquisition is in line with Empiric's investment criteria and returns profile."

Jefferies International Buy 110.50 125.00 125.00 Reiterates

Interesting one now as it seems that, with Brexit, the numbers of foreign students registering for courses in England (particularly science, medicine and associated subjects) is already down by 9%. It may be that there might be a bit of over supply in the UK in the following 12 months, though I think ESP also has properties in the US which should mitigate the problem.
Yield at around 5% is attractive, but sp taking a bit of a hit at mo.

Harry - posted elsewhere :-

"According to ESP's results RNS only 6% of full time students are from the EU, so a fall of 9% on that equates to a fall of 0.54% only on the overall figure. Also many (I think probably most) of ESP's properties are already fully let for this new academic year - see for example the most recent RNS for newly acquired properties (7th Oct) which states that all 5 are 100% let."

Empiric commits to three forward funded developments in Leicester

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 entered into three forward funding arrangements with a Leicester-based property company to develop a total of 170 beds in Leicester for an aggregate investment of £15.975 million.

134 New Walk and 140-142 New Walk are located immediately to the west and east, respectively, of the Group's recently acquired standing asset at 136-138 New Walk. These Victorian terrace properties are being converted and extended to the rear to the same specification as the standing asset, to form a contiguous run of high specification student accommodation from 134 to 142 New Walk. 134 New Walk will comprise a total of 16 studios, while 140-142 New Walk will comprise 42 studios and three 2-bed apartments. In total, Empiric will own 94 beds at 134 to 142 New Walk.

Princess Road East is a new build, high specification student accommodation scheme comprising 106 studios with generous communal facilities including a gym, cinema, common room and work rooms.

All three properties are adjacent to Victoria Park and close to the University of Leicester and De Montfort University. New Walk is a pedestrianised road linking Victoria Park and the nearby city centre.

The acquisition of the 140-142 New Walk and Princess Road East properties are conditional on the developer satisfying various conditions precedent in the Development Agreement. All three properties will be marketed and managed through the Hello Student® operating platform. 134 New Walk is expected to be delivered by May 2017, in time for the 2017/18 academic year and the other two properties by May 2018, in time for the 2018/19 academic year.

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

"Following this acquisition, the Group will own 730 beds in Leicester, targeting both the University of Leicester and De Montfort University, with some 30,600 full-time students. The Group's existing operating properties have a strong lettings history and are all fully let for the 2016/17 academic year. This acquisition is in line with Empiric's investment criteria."

StockMarketWire.com
Empiric Student Property has agreed a new £40 million extension facility to its existing £80 million fixed rate term loan facility arranged by Barings Real Estate Advisers, a member of the MassMutual Financial Group.

The amended and restated facility is now secured against a portfolio of 25 operating assets, held as a lending group through a wholly owned subsidiary, Empiric Investments (Four) Limited. The new £40 million facility is expected to be drawn down in full on 16 December. The amended and restated facility is repayable in April 2028. The new £40 million extension facility has a fixed all in rate of 3.64%, interest only, throughout the term.

This rate is fixed up to a loan to value ratio of 55%. This provides a fixed all in blended rate of 3.37% for the amended and restated facility.

RESULT OF GENERAL MEETING

Quite a strong vote against the Director's remuneration package!

I shall have to do some research into the Value Delivery Plan. Good for the people who voted. Nice to see them being proactive, rather than the usual 'can't be bothered to vote but am happy to moan' brigade!

Yes it is Harry.

JP Morgan - Chase Nominees Limited CREST: BO01 - Account 11429 < 3%

http://www.iii.co.uk/investment/detail?code=cotn:LSE:ESP&display=discussion

The post at 15.21 by HardBoy is worth a quick read, though he doesn't address the Directors remuneration package question.

Thanks Harry - I hold more WJG value wise - I think some holiday research generally is in order!

Numis Add 107.50 120.00 123.00 Upgrades

Empiric acquires student accommodation scheme in York: Foss Studios

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 220 bed student accommodation scheme in York for £23.3 million (excluding costs).

Foss Studios was completed for the 2015/16 academic year and comprises 220 large, well specified, studio rooms across three purpose built buildings. The scheme is located directly opposite the Group's forward funded development on Lawrence Street, between York city centre and the University of York, and approximately 1.5 miles from York St John University.

The scheme has been acquired from Curlew Student Trust, the student property investment vehicle of CBRE Global Investment Partners. It is currently managed by Fresh Student Living but will be integrated onto the Group's Hello Student® operating platform at the end of March 2017. Foss Studios is fully let for the 2016/17 academic year to students from both the University of York and York St John University, and is already letting well for the 2017/18 academic year.

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Empiric to acquire student accommodation property in York: Percy's Lane

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 land and entered into a forward funded development agreement for a 106 bed, premium student accommodation development in York for a total funding commitment of £9.245 million.

The Percy's Lane development comprises the redevelopment of a site involving the demolition of the existing buildings and the construction of new purpose-built student accommodation with a mix of studios and one, three and five bedroom apartments, as well as six bedroom townhouses and communal facilities.

The scheme is being developed by S. Harrison Developments, one of the leading property and development businesses in the north of England, and also the developer of Empiric's Lawrence Street forward funded development in York. Construction on the Percy's Lane property is due to commence in May 2017 with practical completion scheduled in time for the 2018/19 academic year.

The property is located close to the Lawrence Road development and the newly acquired Foss Studios scheme, between York city centre and the University of York, and is approximately 1.5 miles from York St John University. The scheme is immediately adjacent to an existing student accommodation property which is currently leased to York St John University.

Empiric will be responsible for marketing and letting the scheme through the Hello Student® operating platform, with a show flat being made available from January 2018.

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

"This investment follows the acquisition of Foss Studios, York, announced earlier this week. As a result of these transactions, the Group will own a total of 441 beds in York, some 2% of the local full-time student population. The design of the self-contained apartments is in line with our "townhouse" concept, providing students with a group living environment with all the benefits of purpose-built student accommodation. This acquisition is in line with Empiric's investment criteria and returns profile."