Reduction to Cost of Borrowings

GCP Student Living plc (the "Company" or "Group") Reduction to Cost of Borrowings Following on from the Company's oversubscribed capital raise to acquire ScapeGreenwich, the Board is pleased to announce that the Group has entered intosignificantly improved new financing arrangements with its lender, BarclaysBank plc ("Barclays"). As at 31 March 2014, total bank borrowings were £38.6 million (set to mature inJuly 2015), producing a debt to property value of 35.3%. The Company had aninterest rate swap with a notional value of £25.1 million at a rate of 2.745%,and a weighted average cost of debt of 4.4% at 31 March 2014. The Company has secured a £40 million facility with Barclays set to mature inMay 2019. The previous interest rate swap has been terminated and replaced with aninterest rate swap with a notional value of £20 million. The cost of cancellingthe previous swap was £0.6 million. The new banking arrangements will reduce the Group's weighted average cost ofdebt to 3.0%. Accordingly, as at the date of this announcement, total bank borrowings were£40 million, producing a debt to property value of 26.7% after the issue of newshares and the acquisition of Scape Greenwich. For further information please contact: Gravis Capital Partners LLP Tom Ward [email protected] 020 7518 1496 Cenkos Securities plc Dion Di Miceli [email protected] 020 7397 1921Tom Scrivens [email protected] 020 7397 1915 Buchanan Charles Ryland [email protected] 020 7466 5000Sophie McNulty [email protected] About GCP Student Living plc The Company is the first student accommodation REIT in the UK. The Companyinvests in modern, purpose-built, private student residential accommodation andteaching facilities, initially branded and operated by Scape Student Living.Facilities will be located primarily in and around London where the InvestmentManager believes the Company is likely to benefit from supply and demandimbalances for student residential accommodation. In total, London has over 400,000 students and the largest number of overseasstudents of any city in the world, at over 100,000, with international studentnumbers up by 9% in 2014/15 and expected to increase at a similar rate in theyears to come. However, with only c.70,000 beds in purpose-built studentaccommodation in London, there are insufficient beds for domestic first yearstudents let alone international students and postgraduates. The Company's assets are primarily occupied by international students andpostgraduates and offer new high specification facilities and hotel-levelconcierge type services. The Company will only acquire properties once they are completed and generatingincome.