25th Mar 2014 11:32
LONDON (Alliance News) - Unite Group PLC Tuesday said it had succeeded in raising gross proceeds of about GBP100 million through a share placing and open offer.
The company had announced March 6 that it wanted to raise the money so that it could increase its stake in the the Unite UK Student Accommodation Fund to 22%, from 16%, and to fund future development activity.
The Unite UK Student Accommodation Fund is an open-ended non-listed real estate fund that focuses on acquiring and operating high-quality student accommodation in the UK.
"We are delighted with the strong support shown by our shareholders for our strategy. The outlook for the student accommodation sector is positive and, as a result of the successful conclusion of this fundraising, Unite is ideally placed to build further on its track record of sustainable, profitable growth," Chief Executive Mark Allan said in a statement.
Unite said 93.6% of the open offer shares were taken up, with the rest taken up in a placing. It will offer a further 7.7 million shares through a firm placing.
Unite Group shares were down 0.8% at 433.60 pence Tuesday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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