GCP Student Living has announced an initial issue and placing programme for £60m in new shares.
Proceeds will be used to diversify the company’s investment portfolio while also increasing its market capitalisation in an effort to attract a wider investor base.
It will accept applications from investors for up to £90m until 21 February 2017, although the programme is dependent on achieving gross proceeds of at least £42.5m.
Dealing in the new shares will start on 24 February as long as GCP does not change its close date.
GCP was the UK’s first REIT focused on student accommodation and has so far targeted London-based assets valued at an average of more than £70m. Its main competitor, Empiric Student Property, has an average asset size of £7.1m.
The share issue follows Amiri Capital’s plans for a student housing REIT targeting assets in the middle ground between its competitors’ portfolios.
This is GCP’s first issue after its shareholders last week approved a series of placements that will total 200m shares.
Shares will be issued at 140p per share – a discount to the company’s 143p closing share price on 1 February.
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