Empiric Student Property has strategically expanded its portfolio with the recent £9 million acquisition of Selly Oak Apartments in Birmingham. This move underscores the company’s commitment to enhancing its presence in a key student housing market, particularly in proximity to the University of Birmingham. With its 63-bed facility fully booked for the 2024/25 academic year, Empiric anticipates returns exceeding 6% beginning September 2025, with longer-term projections indicating returns could surpass 10%.
This acquisition serves as a significant milestone for Empiric, marking their second property purchase following an equity fundraising round in October 2024. It enhances the company’s operational capacity in the Selly Oak area, now totaling 430 beds. The company has allocated the remaining funds from this equity raise towards refurbishment efforts across three postgraduate accommodation sites, with a dedicated £10 million earmarked for enhancements expected to commence in 2025. Additionally, any surplus proceeds are being utilized to manage and repay a flexible debt facility, thereby ensuring financial stability.
In a broader strategic context, Empiric has also obtained planning permission for a new 57-bed postgraduate accommodation scheme at College House in Bristol, situated near the University of Bristol. This conversion of a former office building into student housing is part of the company’s expansion of the College Green cluster, with completion anticipated in early 2026.
Duncan Garrood, CEO of Empiric Student Property, stated, “The acquisition of Selly Oak Apartments finalizes the deployment of our acquisition funds as projected. Birmingham remains a pivotal university city, home to over 50,000 students, yet it only offers 27,500 PBSA beds, with less than 10,000 new units currently approved for development.”
The firm is dedicated to refining its portfolio’s quality and resilience; since March 2021, Empiric has divested nearly £150 million of non-core assets, with plans to liquidate further non-aligned properties when market conditions and pricing are favorable. This acquisition, along with the expansion plans for Bristol, aligns with the company’s strategy to build a portfolio of high-quality accommodations that not only enhance shareholder returns but also align closely with top-tier universities—currently achieving an alignment rate of 87%.