EMPIRIC Student Property is to become the latest student housing fund to list on the stock market as it seeks to take advantage of a demand for rooms from wealthy overseas students across the UK.
The fund plans to list next month as a real estate investment trust (Reit) and is looking to raise £110m to help fund acquisitions in the UK’s top 27 university cities, including London.
It will be the second student housing Reit to list after the float of GCP Student Living last year.
Empiric will be self-managed by the founders of London Cornwall Property Partners, chief executive Paul Hadaway and executive director Tim Attlee, who will invest in the IPO on the same terms as other investors.
Former Taylor Wimpey director Baroness Dean will also join the board as a non-executive director.
The firm, which is targeting a 13 per cent shareholder return per year, will buy an initial seven properties comprising of 1,100 beds and four developments in cities including Bristol and
Exeter for £82m. These include LCPP’s entire £40m student housing portfolio.
BEHIND THE DEAL
DEXION CAPITAL | ROBERT PEEL
1 Robert Peel joined Dexion as a corporate finance director in 2012 after more than three years at Winterflood Securities.
2 Peel started his career at JP Morgan Asset Management in 1999 after studying maths and philosophy at King’s College and has specialised in alternative investment funds since.
3 Peel is a keen cyclist, albeit perhaps slightly less keen after breaking his toe coming off his bike during last month’s Tube strike, ending 19 years of accident-free cycling in London.
Peel is working with Dexion director Ravi Anand on the deal. Meanwhile Akur is also acting as joint financial adviser, with a team led by managing directors Tom Frost and Anthony Richardson. Citigate Dewe Rogerson’s Toby Moore, Grant Ringshaw and Shelly Chadda are Empiric’s financial PR advisers.