GCP Student Living announces fresh placing
GCP Student Living
212.50p
05:32 21/12/21
GCP Student Living updated the market on Monday, reporting that its operational property portfolio was now fully occupied for the 2018/19 academic year.
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The London-listed real estate investment trust said its average rental growth compared to the 2017/18 academic year on a like-for-like basis was 3.5%.
Additionally, it said that following its acquisition in 2017, the comprehensive refurbishment of Scape Bloomsbury in London WC1 had completed ahead of schedule, and would open to students for the upcoming academic year, providing 432 beds WC1.
As of Monday, bookings for that asset were said to be ahead of the investment manager’s forecasts.
GCP Student Living also announced a placing of new ordinary shares, targeting gross proceeds of up to about £55m, to be conducted under its existing shareholder authorities.
The placing price would be 149.50p each, representing a 3.10p discount to the closing price on 7 September, and a 1.89p premium to the prevailing EPRA net asset value ex-income of 147.61p per ordinary share.
“[The placing will allow for] the acquisition of an additional asset with attractive rental characteristics, [which[ further diversifies the company’s investment portfolio and reduces portfolio concentration risk,” the board explained in its statement.
It said it would also provide equity capital to fund the construction works of Scape Brighton, reducing the requirement for GCP Student Living to obtain additional debt financing for those purposes.
The board said it was also looking to “grow the equity base over which the fixed costs of the company are spread”, which would reduce its ongoing costs per ordinary share.
“An increase in the market capitalisation of the company should make the company more attractive to a wider investor base.
“he introduction of any new shareholders pursuant to the placing will further diversify the company’s shareholder register and potentially enhance liquidity in the ordinary shares.”