Birmingham PBSA purchased by student accommodation provider for £9m
Empiric Student Property has completed the £9m acquisition of Selly Oak Apartments in Birmingham, expanding its portfolio and boosting its presence near the University of Birmingham.
The 63-bed student accommodation property is fully let for the 2024/25 academic year and is expected to deliver returns above 6% starting in September 2025, with long-term returns projected to exceed 10%.
The acquisition marks Empiric’s second purchase following its equity fundraise in October 2024 and increases the company’s operational beds in the Selly Oak cluster to 430.
It completes the portion of funds allocated for acquisitions, and the remaining funds will be directed towards refurbishing postgraduate accommodation at three sites, with £10m set aside for upgrades beginning in 2025.
In the meantime, any remaining proceeds are being used to repay a flexible debt facility.
Empiric has also secured planning permission for a 57-bed postgraduate scheme at College House in Bristol.
Located near the University of Bristol, the conversion of the former office building will be part of the company’s College Green cluster and is set for completion in early 2026.
Duncan Garrood, chief executive officer of Empiric Student Property said: “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.
“The Company continues to improve the quality and resilience of its portfolio. Since March 2021, it has sold nearly £150 million of non-core assets and will continue to dispose of non-aligned properties when market opportunities and appropriate pricing allow. This acquisition, together with the planning consent achieved to expand our Bristol cluster, supports the strategy outlined in the October equity raise of growing a portfolio of high-quality buildings which enhance shareholder returns and benefit from increasing alignment to top-tier universities (currently at 87%).”
