Nomination Agreement with University of Bath
6th April 2016
The Board of Empiric Student Property plc is pleased to announce that the Group has entered into a nomination agreement with the University of Bath (the "Nomination Agreement") in respect of the Group's three operating properties (Piccadilly Place, Canal Bridge and Widcombe Wharf) and two forward committed assets due for completion in September 2016 (1-3 James Street West and James House) in Bath. The duration of the Nomination Agreement is for five years from commencement in September 2016 (except for the 141 studios at James House which are covered under the Nomination Agreement for one year from commencement).
Under the terms of the Nomination Agreement, the Group's portfolio in Bath (totalling 354 beds for the 2016/17 academic year) will be let to students provided by the University of Bath, which will guarantee 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 2-5%, with reference to the Retail Price Index.
Martyn Whalley, Director of Estates at the University of Bath, commented:
"We are pleased to have secured access to these beds on behalf of University of Bath students. We recognise the importance our students place on somewhere to live which is comfortable, secure and conducive to effective study. We believe that Empiric understands these requirements and that our students will appreciate the quality of accommodation on offer."
Paul Hadaway, Chief Executive of Empiric Student Property plc, commented:
"The Nomination Agreement provides the University of Bath with dedicated access to much needed premium accommodation for its students, and provides Empiric with committed income for the Bath portfolio for a five year period. We look forward to a strong working relationship with the University of Bath going forward. While the focus of Empiric remains on direct-let student accommodation, we will assess the dynamics of each particular market and implement the most appropriate rental strategy."
Questions? Get in touch using the contact details below.
Questions? Get in touch.
Empiric Head Office
Empiric Student Property plc
Swan House, 17-19 Stratford Place, London W1C 1BQ
+44 (0)20 3828 8700
+44 (0)20 7379 5151
Managing Director, Corporate Broking
Jefferies International Ltd
+44 (0) 20 7029 8000