Empiric acquires Revcap interest in joint venture asset in Southampton
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 50 per cent. share in Empiric (Southampton) Limited previously owned by an investment fund affiliated with Revcap Advisors Limited ("Revcap"). As a result, the Group now owns 100 per cent. 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 £4.95 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 £10.03 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.
Paul Hadaway, Chief Executive of Empiric Student Property plc, commented:
"This is the first of two joint venture developments with Revcap to be brought successfully to a conclusion. Brunswick House is a prime example of our ability to take an existing office block and redevelop it into a premium student accommodation asset, which meets all of our exacting specifications. We continue to enjoy a strong working relationship with Revcap as a joint venture partner, and look forward to the completion of our Willowbank development in Glasgow in August 2016."