Metro unit acquires 30% stake in UK student accommodation property for £4m
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PROPERTY group Metro Holdings' recently established student accommodation fund Paideia Capital UK Trust has entered into a sale and purchase agreement with an independent third party to acquire a property in Bristol, United Kingdom, for a total price tag of £30.1 million (S$54.8 million).
Paideia Capital UK Trust is 30 per cent owned by Metro's wholly-owned subsidiary Sun Capital Assets.
The remaining 70 per cent stake in the trust is held jointly by Lee Kim Tah Holdings Limited, Aurum Investments (Private) Limited and an undisclosed third party. Aurum is a direct-wholly owned subsidiary of construction company Woh Hup Holdings.
As such, Metro's equity commitment to the acquisition is some £4 million, and will be funded by internal cash sources and external borrowings.
The property, known as Dean Street Works, is located at the junction of Dean Street and Wilder Street in the St Pauls area of Bristol, and is some 1.4km from the main campus of the University of Bristol which has approximately 27,000 students. It is also located near Bristol's city centre and Broadmead, the city's main shopping district.
The six-storey property was completed in August last year, and has 44 studios and 181 ensuite units. Dean Street Works currently has a committed occupancy rate of 100 per cent.
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Metro said the property's price, which was arrived at after taking into account the expected net income to be derived from the property and other factors, comprises the property's purchase consideration of £29.4 million, and the related stamp duty and estimated fees and expenses of £700,000.
The company added that the investment is in the ordinary course of its property investment and development business, and is not expected to have any significant effect on its consolidated net tangible asset per share and consolidated earnings per share for the current financial year ending March.
Shares in Metro closed at 74 Singapore cents on Friday prior to the announcement, up 2.1 per cent or 1.5 Singapore cents.
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