25th Sep 2015 15:08
LONDON (Alliance News) - GCP Student Living PLC on Friday said it has exchanged contracts to acquire Scape Shoreditch, a private student accommodation residence in the east London neighbourhood of Shoreditch for GBP166 million.
Scape Shoreditch is within a 15 minute walk to The City University and CASS Business School, and comprises 541 studio bedrooms and 10,000 square feet of communal areas including a gym, dance studio, study lounge, games room, cinema, communal kitchen, sun terrace and BBQ terrace. The building also includes around 49,000 square feet of commercial facilities.
GCP said that the GBP166 million purchase price may be adjusted depending on contracted rent levels over the course of the 2015/16 academic year.
The acquisition is expected to complete over the course of the next week and will be funded from the proceeds of the recent C share issue and by its new banking facility, GCP said.
GCP has entered into new financing arrangements with Pricoa Mortgage Capital, which on completion of the acquisition will replace the company's existing facility with Barclays Bank PLC.
The new arrangements include a facility for up to GBP130 million of borrowings which is set to mature in September 2024.
Shares in GCP were trading flat at 137.95 pence late Friday.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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