UK student accommodation owner and operator Empiric Student Property has raised £56.1 mln (€67.4 mln) through a combination of a share placement and a retail offer.
The company allocated 59,686,950 new shares, representing 10% of its existing total, for £0.93 (€1.12) each to institutional and other qualified investors. Additionally, 663,714 new shares were issued at the same price to retail investors. These newly issued shares are anticipated to commence trading on the London Stock Exchange on 21 October.
Jefferies International and Peel Hun acted as bookrunners.
This equity raise aligned with the company's previously announced plan to raise at least £50 mln (€60.2 mln) to fund growth opportunities.
The net proceeds from this equity raise will be utilized to acquire new PBSA properties in university cities like Manchester and Edinburgh, with an estimated value of £30 mln (€36.1 mln). Additionally, the funds would be used to support ongoing refurbishment projects for postgraduate accommodation.
These investments are anticipated to generate substantial returns, with projected internal rates of return exceeding 10%. The equity offering also aimed to strengthen Empiric's financial position, maintaining a loan-to-value ratio within the 30% to 35% range.
Empiric Student Property CEO, Duncan Garrood, commented: ‘This placing will allow the business to grow, drive operational margins and create long-term shareholder value. There is a fantastic opportunity now ahead of us. We will remain focused on doing what we do best; creating high quality, modern student accommodation serving top-tier universities, incrementally driving value to generate stable, long-term returns for our shareholders.’
Furthermore, Empiric reported a current revenue occupancy rate of 95% for the 2024/25 financial year, expecting to reach full occupancy by January. Like-for-like rental growth for the academic year is anticipated to exceed 6.5%, surpassing inflation and aligning with management's expectations.
