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New student accommodation trust seeks £110m

New student accommodation trust seeks £110m

A new real estate investment trust that will focus on student accommodation is seeking to raise more than £110 million in a June flotation.

The Empiric Student Property fund will be managed by a team from London Cornwall Property Partners, with the firm’s current £40 million portfolio of student accommodation assets expected to be acquired by the new trust.

Empiric is targeting an annual total shareholder return of 13% once fully invested, comprising a 6% dividend yield and average annual net asset value growth of 7%.

The trust’s total expense ratio is expected to be approximately 1% of net asset value.

Empiric intends to focus on the UK’s top 27 university cities, with accommodation provided principally to second and third-year students, postgraduates, and international students. It claimed that in its target cities, the equivalent of 96% of the student body beyond first-year undergraduates have no access to purpose-built accommodation.

The managers expect net initial yields on its properties of around 6.5%, with annual rental reviews.

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Profile: The opportunity set that attracted Brett Williams to wealth management

Profile: The opportunity set that attracted Brett Williams to wealth management

Brett Williams is best known for helping to build some of the biggest platforms in the IFA market.He made the move over to wealth management to head SEI’s UK business earlier this year in the belief that this is where the best opportunities now lie.

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