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Highlights:
- Fundraising Success: Empiric raised £56.1 million through a share placing to fund acquisitions and refurbishments.
- Strategic Focus: The funds will be used to enhance student accommodation near top-tier universities, driving long-term shareholder value.
- Market Reaction: Shares dipped 2% following the announcement, despite strong participation from institutional investors and company directors.
Empiric Student Property PLC (LSE:ESP) has successfully raised £56.1 million through a share placing to fund new acquisitions and the refurbishment of its student accommodation properties. The company placed 59,686,950 new shares, representing 9.9% of its issued capital, at a price of 93p each, raising £55.5 million. An additional 663,714 shares were sold through a retail offering at the same price, bringing in an extra £0.6 million.
Focus on Growth and Refurbishment
The share offering, first announced on Wednesday, is intended to support the company’s strategy of investing in accretive opportunities and upgrading student accommodations. Chief Executive Duncan Garrood emphasized that this initiative would help drive operational margins and create long-term shareholder value. With a focus on acquiring properties near top-tier universities and refurbishing postgraduate accommodations, Empiric aims to enhance its portfolio and deliver stable, long-term returns.
Institutional Support and Market Response
Jefferies and Peel Hunt acted as book runners for the offering, and institutional investors and company directors were among those who participated in the placement. Despite the positive outlook, Empiric’s shares dipped 2% to 95p following the announcement, indicating a cautious market response to the share dilution. However, Garrood remains optimistic about the opportunities ahead, highlighting the company's commitment to creating high-quality, modern student living environments.
This capital raise is a strategic move by Empiric to strengthen its portfolio and enhance its offering in the competitive student housing market.
