23rd Dec 2019 12:21
(Alliance News) - GCP Student Living PLC said Monday it has raised GBP77 million through an oversubscribed share placing, the proceeds of which will go towards acquisitions and the repayment of debt.
The student accommodation-focused real estate investment trust said it had received applications that exceeded the target amount substantially. This led to a scaling back exercise.
GCP Student Living First announced plans on Friday last week to raise GBP75 million.
As a result, 41.4 million shares have been issued at a price of 186.00 pence per share, reflecting a 3.1% discount to GCP's closing price on Friday.
Shares in GCP Student Living - which is headquartered in Exeter - were up 1.4% at 194.60 pence on Monday in London. It has a market capitalisation of GBP805.0 million.
Applications for GBP50 million of the gross proceeds were accepted from pension funds manager APG Asset Management NV.
Proceeds from the placing will go towards partially funding the acquisition of Scape Mile End Canalside, and for GCP Student Living to maintain conservative borrowing levels, including the repayment of its redrawable credit facility.
In September, GCP Student said it had a contractual arrangement to acquire Scape Canalside, a new-build 412 bed asset located adjacent to Queen Mary University of London.
GCP Student Living now has 455.0 million shares issued overall.
By Dayo Laniyan; [email protected]
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