31st Mar 2014 11:43
LONDON (Alliance News) - UK manager and developer of student accommodation UNITE Group PLC Monday said that the UNITE Student Accommodation Fund successfully raised GBP106 million of new equity last week, which it will use to reduce leverage and as well as potential future acquisitions.
USAF is an open-ended non-listed real estate fund that focuses on acquiring and operating student accommodation in the UK.
UNITE Group said that it invested GBP55 million, nearly all of which represented the planned deployment of proceeds from its own recent equity fundraising, with the remainder funded from existing cash resources. It said that its stake in the fund has increased to approximately 21%.
A further GBP51 million was invested into USAF by a combination of other existing and new institutional investors, UNITE Group said.
It said that USAF will initially use the funds to reduce leverage, and for potential acquisitions that would grow and enhance its portfolio.
Shares in UNITE Group were trading 0.2% higher at 434.74 pence per share Monday early afternoon.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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