Empiric Student Property has added the £10.6m 240-bed student accommodation property in Southampton, the Emily Davies Halls of Residence, to its portfolio.
The property, which comprises three and four bed apartments, is fully occupied and leased by Southampton Solent University until September 2019 with the rent subject to annual RPI increases. Following the expiry of the lease, Empiric intends to direct let the property.
Post-acquisition, Empiric will own 459 beds in Southampton amounting to approximately 9% of Southampton’s private PBSA.
Tim Attlee, acting chief executive of Empiric Student Property, said: “As envisaged in the company’s 2025 plan, adding affordable accommodation to Empiric’s existing studio stock in the city widens the rental range offered to students and allows cross-selling between accommodation formats.
“The property will also contribute to a reduction of the company’s per-bed operating costs in the city. The investment is immediately income producing and in line with Empiric’s investment criteria and returns targets.”
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