Empiric to Offload up to 10% of Its Portfolio
Posted 23rd August 2018 at 3:10pm by Richard Ward in Finance
Empiric Student Property is looking to offload 10% of its £945 million student property portfolio as part of a move to reduce costs.
The review into its portfolio was initiated as part of drive to improve company performance, after identifying a number of financial and operational inefficiencies.
Empiric is looking to begin disposing of its assets in the autumn, adding: "We believe the start of the new academic year is the right moment to commence a measured programme of tailored disposals of properties either singly or in small groups."
Proceeds from the sales will be reinvested in standing assets or in the development and forward funding of new high-yielding core assets.
In an effort to reduce costs, Empiric is bringing facilities management in-house from April next year, which is expected to result in significant savings.
The company has also reportedly cut the number of consultants and contractors it uses and reduced the headcount at its head office. Further savings are also expected to be made once it brings its human resources and IT functions in-house.
Commenting on the plans, Empiric's chief operating officer and chief financial officer, Lynne Fennah, said: "Once everything comes in-house, we will be completely in control of our own culture, our goals and objectives, and it will make it much easier to manage the business."
Empiric owns more than 9,000 student bed spaces in more than 30 university towns and cities including Manchester, Leicester, Liverpool and Cardiff.