20th May 2013 07:00
GCP STUDENT LIVING PLC - First Day of DealingsGCP STUDENT LIVING PLC - First Day of Dealings
PR Newswire
London, May 17
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN OR INTOCANADA, JAPAN, AUSTRALIA, THE REPUBLIC OF SOUTH AFRICA OR THE UNITED STATES OFAMERICA OR TO US PERSONS.
GCP Student Living plc (the "Company")
20 May 2013
FIRST DAY OF DEALINGS
Further to its oversubscribed Placing and Offer for Subscription, GCP StudentLiving, the first student accommodation REIT in the UK, is pleased to announcethe commencement of dealings in its Shares at 08.00 am today on the LondonStock Exchange (Specialist Fund Market) and on the Channel Islands StockExchange ("CISX").
The Shares will trade under the ticker "DIGS" (ISIN: GB00B8460Z43) and havealso been admitted to listing on the Official List of the CISX.
Highlights
* Applications were received for an amount significantly in excess of 70 million Shares, this being the maximum number of Shares available under the Placing and Offer for Subscription. * Accordingly, subscriptions have been scaled back in accordance with the terms set out in the Prospectus with the Company issuing 70 million Shares, raising aggregate gross proceeds of £70 million at an issue price of £1.00 per Share. * The estimated unaudited Net Asset Value per Share at Admission is 97.0 pence. Gearing on Admission was approximately 27% of Gross Assets. * GCP Student Living invests in modern, purpose-built private student rental accommodation and teaching facilities in prime London locations. The initial asset will be Scape East, which is a fully occupied, 588 studio bedroom facility in East London. The Company has already established a pipeline of a further two schemes in central London. * The Company will target an initial annualised dividend yield of 5.5% in the period from Admission to 30 June 2014, and will seek to grow the dividend in line with RPI. Total returns of 8%-10% per annum will be targeted over the longer term. * Cenkos Securities plc is the sole placing agent and financial adviser.Robert Peto, Chairman of GCP Student Living plc, commented:
"Following the highly successful IPO of GCP Student Living the Board is whollyfocused on delivering its investment objective to provide Shareholders withregular, sustainable, long-term dividends coupled with the potential forcapital appreciation. We look forward to working with the Investment Managerand Asset Manager in delivering this objective and growing the Company's assetbase over time."
Tom Ward, Partner at Gravis Capital Partners LLP, added:
"I am delighted with the enthusiasm shown by investors in supporting the IPO ofGCP Student Living, which will be the UK's first REIT focused on studentresidential assets. We believe that the Company will, through its focus onprime London student residential assets, offer investors the ability to accessan asset class which should benefit from the London supply/demand imbalancewith inflation linked characteristics, through a transparent, listedstructure."
Nigel Taee, Chairman of Scape Student Living, commented:
"We are delighted to be working with GCP Student Living. Scape's studentaccommodation facilities deliver a highly attractive offering for students witha unique and innovative integrated living approach, focused around our 'live,learn, work, play' ethos, and we believe that there is an exciting opportunityto capitalise on demand for our facilities. We look forward to working togetherwith GCP Student Living on further deals later this year and beyond."
The net proceeds of the Placing and Offer for Subscription have been used toacquire the Initial Asset, Scape East, as set out in the Prospectus. TheCompany expects to make a further announcement in October 2013 in relation toits second asset acquisition.
For further information please contact:
Gravis Capital Partners LLP
Stephen Ellis [email protected] 020 7518 1495 Tom Ward [email protected] 020 7518 1496Cenkos Securities plc
Tom Scrivens [email protected] +44 (0)20 7397 1915 Charlie Ricketts [email protected] +44 (0)20 7397 1910 Dion Di Miceli [email protected] +44 (0)20 7397 1921 Buchanan Charles Ryland +44 (0)20 7466 5000 Sophie McNulty Louise Hadcocks CISX Listing Sponsor Carey Olsen Corporate Finance +44 (0)1534 888 900Limited Notes to Editors GCP Student LivingGCP Student Living is the first student accommodation REIT in the UK. TheCompany will invest in modern, purpose-built, private student residentialaccommodation and teaching facilities, initially branded and operated by ScapeStudent Living. Facilities will be located primarily in and around London wherethe Investment Manager believes the Company is likely to benefit from supplyand demand imbalances for student residential accommodation. In total, Londonhas over 400,000 students and the largest number of overseas students of anycity in the world, at over 100,000, with international student numbers up by 5%in 2012/13 and expected to increase at a similar rate in 2013/14. However, withonly 60,000 beds in purpose-built student accommodation in London, there areinsufficient beds for domestic first year students let alone internationalstudents and postgraduates.
The Company's first asset, Scape East, is already fully occupied andoperational, with a valuation on 31 March 2013 of £93.0m. The property houses588 studio bedrooms and c.20,000 sq ft of teaching facilities. It is locateddirectly opposite Queen Mary, University of London, one of London's leadinguniversities with c.17,000 students and Russell Group status. Internationalstudents will be a specific target as they are the growth engine of UK highereducation, particularly in London. Scape East, the Fund's initial asset, isprimarily occupied by international students and offers brand new highspecification facilities and hotel level concierge type services which areattractive to overseas students.
GCP Student Living has agreed a right of first offer in connection with twoprojects for approximately 820 beds (c.£160 million) at Scape Greenwich andScape Shoreditch which are scheduled to complete between 2013 and 2015. Inaddition, the Asset Manager has a further 1,200 beds under review fordevelopment in and around London.
The Company will only acquire properties once they are completed and generatingincome.
About Gravis Capital Partners ("GCP"), Investment Manager (www.gcpuk.com)
* GCP provides fund management and financial expertise and is authorised and regulated by the FCA * GCP focuses on income-generating defensive sectors central to the UK's social and community infrastructure, including GCP Infrastructure Investments Ltd, a London-listed investment company with a c.£300m market cap (as at 28 February 2013) * AUM c.£700m (as at 28 February 2013) * Management team have combined experience of over 30 years in the sector * In the last 10 years the partners of GCP have advised on the financing, development, acquisition and management of student accommodation and educational property assets with a value in excess of £500mAbout Scape Student Living ("Scape"), Asset Manager (www.scapeliving.com)
* Scape provides brand and asset management including sales and marketing and social media * Owned and controlled by the principals of GCP, Grosvenor House Group plc ("GHG") and Event Investments Ltd ("Event") * Site finding, land assembly & planning - Event * Design and development - GHG * Financial advisory - GCP * Operations - GHG * Management and customer service located on site, not off siteThe distribution of this announcement and the Issue in certain jurisdictionsmay be restricted by law. No action has been taken by the Company or Cenkosthat would permit an offering of the Shares or possession or distribution ofthis announcement or any other offering or publicity material relating to suchshares in any jurisdiction where action for that purpose is required. Personsinto whose possession this announcement comes are required by the Company andCenkos to inform themselves about, and to observe, such restrictions.
No representation or warranty, express or implied, is made or given by or onbehalf of the Company, Cenkos or the Investment Manager or any of theirrespective directors, partners, officers, employees, agents or advisers or anyother person (whether or not referred to in this announcement) as to theaccuracy, completeness or fairness of the information contained herein and noresponsibility or liability is accepted by any of them for any such informationor opinions.
This announcement does not constitute or form part of, and should not beconsidered as, any offer for sale of subscription of, or solicitation of anyoffer to buy or subscribe for, any shares in the Company or securities in anyother entity, in any jurisdiction, including the United States, nor shall it,or any part of it, or the fact of its distribution, form the basis of, or berelied on in connection with, any contract or investment decision whatsoever,in any jurisdiction.
Cenkos, which is authorised and regulated in the United Kingdom by theFinancial Conduct Authority, is acting as financial adviser and placing agentto the Company in relation to the Issue and Admission and will not beresponsible to any other person for providing the protections afforded toclients of Cenkos or for advising any other person on the contents of thisannouncement or any matter, transaction or arrangement referred to herein.
FCA-authorised firms conducting designated investment business with retailcustomers under COB Rules are reminded that securities admitted to trading onthe Specialist Fund Market will be securities that may have characteristicssuch as: (i) variable levels of secondary market liquidity; (ii) sophisticatedcorporate structures; (iii) highly leveraged structures; and (iv) sophisticatedinvestment propositions with concentrated risks and are therefore intended forinstitutional, professional and highly knowledgeable investors. The Company andits advisers not subject to the COB Rules are responsible for compliance withequivalent conduct of business or point of sale rules in the jurisdiction inwhich they are based or in which they are marketing the securities concerned(if applicable).
Terms used in this announcement shall have the same meanings given to them inthe prospectus of the Company which was published on 12 April 2013 unless thecontext otherwise requires.
Related Shares:
DIGS.L