Unite has completed its share issue to raise up to £100m as it looks to bring forward its regional development pipeline.
At the beginning of March the student accommodation provider proposed the issue of 24.5m new ordinary shares in aggregate through a firm placing, and placing an open offer at 410p a share.
It said that it has received valid acceptances for 15.8m shares under the open offer representing circa 93.6% of the shares available, and the remaining 1.1m open offer shares were taken up pursuant to the placing.
In addition to the placing and open offer, a further 7.7m new ordinary shares will be issued through the firm placing.
When it announced the issue, Unite said that it plans to use half of the proceeds to fund its regional development programme this year, while the balance will be used to increase the group’s stake in its student accommodation fund to 22%.
Dealing in the new shares is expected to commence on 27 March.
Mark Allan, chief executive of Unite, said: “We are delighted with the strong support shown by our shareholders for our strategy. The outlook for the student accommodation sector is positive and, as a result of the successful conclusion of this fundraising, Unite is ideally placed to build further on its track record of sustainable, profitable growth.”
bridget.oconnell@estatesgazette.com
