Empiric Student Property PLC on Wednesday said it is looking to raise at least £50 million to fund growth opportunities.
The FTSE 250 listing said it will look to raise up to 10% of its issued share capital in new shares. It will give the owner and operator of student accommodation the cash to ‘fund a pipeline of accretive investment and postgraduate refurbishment opportunities’.
The number of offer shares and price per share will be determined following the close of a bookbuild. It is aiming for proceeds of at least £50 million.
The fundraise will be in the form of a placing and retail offer.
Shares in the company closed 0.4% higher at 96.90 pence each in London on Wednesday. It has a market capitalisation of £584.8 million.
Empiric said it is currently reviewing ‘a number of attractive investment opportunities’ where it can direct the proceeds of the equity raise. It is in ‘advanced discussions’ over two strategic acquisitions in Manchester and Edinburgh, where it already has a presence.
In addition, the company said revenue occupancy for the 2024/25 financial year stands at 95% currently. It is expecting to be ‘effectively full’ from January.
‘Like-for-like rental growth for the academic year 2024/25 is expected to exceed 6.5%, in line with management’s expectations and guidance and significantly surpassing inflation. The company has seen a significant increase in bookings from international students for the 2024/25 academic year. International students now represent 70% of all bookings (up from 50% in the prior year). Chinese students remain the largest international market at 58% of all international customers,’ Empiric said.
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