3rd Feb 2016 08:27
LONDON (Alliance News) - GCP Student Living PLC on Wednesday said it has decided to go ahead with a share placing to raise up to GBP19.0 million, in a move that will enable it to acquire student accommodation in Bristol.
Bristol serves around 49,000 students across both Bristol University and the University of the West of England, the company said, adding that the accommodation is fully occupied on 51-week lettings for the 2015/16 academic year.
The placing will be priced at 135.0 pence per share, the company said, a 2.4% discount to the closing price on Tuesday. Shares in GCP Student Living were untraded at 137.99 early Wednesday morning.
The potential for an equity fundraising had been disclosed by GCP last month.
As GCP plans to fund the acquisition in full with the proceeds of the placing, the result should be a "modest reduction" to the company's ratio of debt to property value which is currently around 32%. The asset will represent approximately 4.0% of GCP's enlarged portfolio.
Subscribers for the placing shares will not be entitled to the dividend of 1.41 pence dividend declared for the quarterly period ended December 31.
Cenkos Securities is handling the placing.
By Samuel Agini; [email protected]; @samuelagini
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