Owner and operator of studio-led student accommodation Empiric Student Property plc has acquired the Selly Oak Apartments purpose-built student accommodation (PBSA) development in Birmingham for £9m.
Completed with seller and developer of the scheme Tiger Developments Ltd, the acquisition marks a significant step in Empiric’s strategy to expand its studio-led student accommodation portfolio near top-tier universities.
Selly Oak Apartments comprises 63-bed mixed studio and shared apartments. Located less than five minutes’ walk from the University of Birmingham, the scheme sits adjacent to Empiric’s existing Selly Oak cluster, which now totals 430 operational beds.
The addition enables the company to enhance operational efficiencies and upgrade the currently limited amenity offering for residents.
Fully let for the 2024/2025 academic year, the PBSA scheme is expected to deliver yields exceeding Empiric’s 6% target from September 2025, with potential unlevered IRRs of over 10% in the next five years.
“The acquisition of Selly Oak Apartments completes the deployment of proceeds which were earmarked for acquisition opportunities, in line with returns indicated.
“Birmingham is a top-tier University city where over 50,000 students currently seek accommodation in a city with provision of only 27,500 PBSA beds, and less than 10,000 new beds currently consented for future development.”
Duncan Garrood, Chief Executive Officer, Empiric Student Property
The acquisition forms part of Empiric’s broader growth strategy – which was successful in 2024 – supported by the proceeds from its October 2024 equity fundraise.
These funds have also been allocated to the company’s postgraduate refurbishment pipeline, including preparatory work across three existing sites earmarked for conversion and an investment of £10m planned for 2025. Temporarily, proceeds have been used to prepay a flexible debt facility.
Built in 2017 by Tiger, Selly Oak Apartments has maintained full occupancy since its completion under the management of Tiger’s third-party student accommodation management business Host.
“This well-located asset has performed well since its completion, so Empiric’s interest came as no surprise.
“For Tiger, the transaction represents an attractive outcome and opportune moment to release capital for reinvestment into other PBSA and co-living opportunities, as well as the expansion of our third-party management businesses in Host and Habito, our recently formed co-living operational platform.”
John Nesbitt, Managing Director, Host
The sale signifies Tiger’s shift toward a data-driven third-party operational model, leveraging its expertise to focus on co-living and PBSA management. Eversheds Sutherland acted as legal advisors to Tiger on the transaction.
