24th Jul 2024 11:19
Unite Group PLC - Bristol, England-based owner and manager of student accommodation - Raises GBP450 million from the sale of 50.0 million new shares at 900 pence each. The share placing, direct subscription by directors, and retail offer was first announced after the London market close on Tuesday. Early Wednesday, Unite says the retail offer raises GBP3 million and company directors subscribe for GBP125,000 in shares. The remaining GBP447 million comes from an insitutional placing by JP Morgan Cazenove and Deutsche Numis. The new shares represent 11% of Unite's total prior to the raise.
Unite on Tuesday had said the fresh funds will be used to buy seven income producing assets from the Unite Student Accommodation Fund, fund its equity commitment to the Newcastle University joint venture, and commit to two secured development schemes and two new development opportunities, all with planning approval. The capital raise is expected to be accretive to earnings and total accounting returns from 2025, it said.
Current stock price: 924.21p
12-month change: down 2.2%
By Tom Waite, Alliance News editor
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