25th Jul 2018 16:31
LONDON (Alliance News) - GCP Student Living PLC said Wednesday it has signed a new GBP45 million credit facility to part fund the acquisition and construction of a site in Brighton.
GCP has signed a three-year re-drawable credit facility with Wells Fargo & Co worth GBP45 million. It has a prevailing margin of 1.85% above three-month LIBOR.
The funds will be part used for the contract to build a "large-scale" student accommodation site in Brighton, which will have around 550 beds.
Scape Brighton, as the site will be called, should be ready for the 2020/2021 academic year and GCP said it will benefit from licensing fees which will give an approximate 5.5% per year coupon through construction.
GCP will use existing cash reserves alongside the new Wells Fargo financing.
Shares were 0.9% higher on Wednesday at a price of 149.80 pence each.
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