27th Apr 2015 16:10
LONDON (Alliance News) - GCP Student Living PLC late Monday said it will aim to raise about GBP95 million through an open offer, placing and offer for subscription of convertible preference shares, but it could increase that amount to GBP130 million.
"It is currently envisaged that the net proceeds of the issue will be used to acquire Scape Surrey, The Pad 2 (located adjacent to Royal Holloway, University of London) and Scape Shoreditch," GCP said in a statement.
The three developments are close to being completed, according to GCP, which said the target acquisitions have about 800 beds. The company will look to complete the acquisitions for the start of the 2015/16 academic year.
GCP had previously disclosed that it had committed to acquire Scape Surrey and The Pad 2. It had said it was in "advanced negotiations" over a third development.
GCP Student Living said the fundraising will be structured in a way designed to prevent existing shareholders' net asset value from being diluted. It said that any costs directly related to the fundraising will be borne by the convertible preference shares.
Those costs are expected to be equivalent to about 2% of the proceeds, the company said.
GCP Student Living shares closed up 0.5% at 124.50 pence per share on Monday.
By Samuel Agini; [email protected]; @samuelagini
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