GCP Student is aiming to raise up to £75m through a share placing.
Priced at 186p share, the placing represents a 10.4% premium to the company’s prevailing EPRA net asset value (ex-income) of 168.55p per share and a discount of 6.3% to the closing market price per share on 18 December 2019 of 198.4p.
The student accommodation-focused REIT said it was launching the share placing in response to “specific market demand” from Dutch multinational APG Asset Management.
APG has indicated to GCP that the pension funds it manages intend to subscribe, in aggregate, for up to £75m by value of the placing shares at the placing price, subject to a minimum of £50m.
GCP said it intended to use the proceeds from the placing to help fund its acquisition of Scape Canalside on the Queen Mary University Campus in Mile End, E3, and to keep its borrowing levels “conservative”.
GCP added that if the purchase of Scape Canalside did not go ahead it would repay its redrawable credit facility and fund the completion of construction of its Scape Brighton asset instead of drawing on additional debt.
The share placing is expected to close at 1pm on 20 December and the new shares to start trading on the London Stock Exchange on 27 December.
To send feedback, e-mail louise.dransfield@egi.co.uk or tweet @DransfieldL or @estatesgazette
