Empiric Student Property has shared an update on the deployment of proceeds from the Company’s October 2024 Equity Fundraise and the receipt of planning permission to add over 300 beds to Victoria Point, their Manchester purpose-built student accommodation (PBSA) development.
The permission, from Manchester City Council, allows the redevelopment of two of the existing buildings and extensions of the remaining four. In aggregate, Victoria Point has been granted consent to increase the current provision of student beds from 310 to 876.
All retained rooms will benefit from refurbishment or reconfiguration, with further investment planned to improve the scheme’s sustainability credentials and the amenities available to students in their Manchester cluster.
Implementation is not anticipated to begin until late 2026 and may be completed in a phased manner.
Also, in line with the proposed use of proceeds set out in October 2024, Empiric completed the acquisition of Tatton House in Manchester, a 136 bedroom, all-studio PBSA scheme, acquired for £19.75m in December 2024.
The property is well located, being under a ten minute walk to the Manchester University campus whilst also opposite their existing Victoria Point Hub.
This location allows the business to unlock operational efficiencies and improve the low amenity offer currently available to residents of Tatton House. This operational PBSA asset is expected to deliver a 7% net initial yield from September 2025.
A second acquisition is under offer and is currently expected to conclude by the end of the first quarter of 2025, also in line with Empiric’s deployment assumptions.
Preparatory works have begun at three existing sites earmarked for conversion to the Company’s Postgraduate product, with over £10m on track for investment during 2025.
These refurbishments are expected to deliver unlevered IRRs in excess of 12%. In the meantime, proceeds have been applied in prepayment of a flexible debt facility.
“Following the Company’s successful fundraise last year, we have been focused on strategically deploying the proceeds into growth opportunities, expanding our Manchester cluster through the addition of Tatton House and progressing our Postgraduate pipeline through the repositioning of existing buildings. These activities, in addition to the recent grant of planning permission at Victora Point, support our strategy of growing a portfolio of high quality buildings in top-tier university locations where purpose built student accommodation remains acutely undersupplied.”
Duncan Garrood, Chief Executive Officer, Empiric
A further update will be provided alongside the Company’s annual results on 13 March 2025.
