NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN OR INTO
CANADA, JAPAN, AUSTRALIA, THE REPUBLIC OF SOUTH AFRICA OR THE UNITED STATES OF
AMERICA 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 Student
Living, the first student accommodation REIT in the UK, is pleased to announce
the commencement of dealings in its Shares at 08.00 am today on the London
Stock Exchange (Specialist Fund Market) and on the Channel Islands Stock
The Shares will trade under the ticker "DIGS" (ISIN: GB00B8460Z43) and have
also been admitted to listing on the Official List of the CISX.
* 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 wholly
focused on delivering its investment objective to provide Shareholders with
regular, sustainable, long-term dividends coupled with the potential for
capital appreciation. We look forward to working with the Investment Manager
and Asset Manager in delivering this objective and growing the Company's asset
base over time."
Tom Ward, Partner at Gravis Capital Partners LLP, added:
"I am delighted with the enthusiasm shown by investors in supporting the IPO of
GCP Student Living, which will be the UK's first REIT focused on student
residential assets. We believe that the Company will, through its focus on
prime London student residential assets, offer investors the ability to access
an asset class which should benefit from the London supply/demand imbalance
with inflation linked characteristics, through a transparent, listed
Nigel Taee, Chairman of Scape Student Living, commented:
"We are delighted to be working with GCP Student Living. Scape's student
accommodation facilities deliver a highly attractive offering for students with
a unique and innovative integrated living approach, focused around our 'live,
learn, work, play' ethos, and we believe that there is an exciting opportunity
to capitalise on demand for our facilities. We look forward to working together
with GCP Student Living on further deals later this year and beyond."
The net proceeds of the Placing and Offer for Subscription have been used to
acquire the Initial Asset, Scape East, as set out in the Prospectus. The
Company expects to make a further announcement in October 2013 in relation to
its second asset acquisition.
For further information please contact:
Gravis Capital Partners LLP
Stephen Ellis firstname.lastname@example.org 020 7518 1495
Tom Ward email@example.com 020 7518 1496
Cenkos Securities plc
Tom Scrivens firstname.lastname@example.org +44 (0)20 7397 1915
Charlie Ricketts email@example.com +44 (0)20 7397 1910
Dion Di Miceli firstname.lastname@example.org +44 (0)20 7397 1921
Charles Ryland +44 (0)20 7466 5000
CISX Listing Sponsor
Carey Olsen Corporate Finance +44 (0)1534 888 900
Notes to Editors
GCP Student Living
GCP Student Living is the first student accommodation REIT in the UK. The
Company will invest in modern, purpose-built, private student residential
accommodation and teaching facilities, initially branded and operated by Scape
Student Living. Facilities will be located primarily in and around London where
the Investment Manager believes the Company is likely to benefit from supply
and demand imbalances for student residential accommodation. In total, London
has over 400,000 students and the largest number of overseas students of any
city 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, with
only 60,000 beds in purpose-built student accommodation in London, there are
insufficient beds for domestic first year students let alone international
students and postgraduates.
The Company's first asset, Scape East, is already fully occupied and
operational, with a valuation on 31 March 2013 of £93.0m. The property houses
588 studio bedrooms and c.20,000 sq ft of teaching facilities. It is located
directly opposite Queen Mary, University of London, one of London's leading
universities with c.17,000 students and Russell Group status. International
students will be a specific target as they are the growth engine of UK higher
education, particularly in London. Scape East, the Fund's initial asset, is
primarily occupied by international students and offers brand new high
specification facilities and hotel level concierge type services which are
attractive to overseas students.
GCP Student Living has agreed a right of first offer in connection with two
projects for approximately 820 beds (c.£160 million) at Scape Greenwich and
Scape Shoreditch which are scheduled to complete between 2013 and 2015. In
addition, the Asset Manager has a further 1,200 beds under review for
development in and around London.
The Company will only acquire properties once they are completed and generating
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 £500m
About 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 site
The distribution of this announcement and the Issue in certain jurisdictions
may be restricted by law. No action has been taken by the Company or Cenkos
that would permit an offering of the Shares or possession or distribution of
this announcement or any other offering or publicity material relating to such
shares in any jurisdiction where action for that purpose is required. Persons
into whose possession this announcement comes are required by the Company and
Cenkos to inform themselves about, and to observe, such restrictions.
No representation or warranty, express or implied, is made or given by or on
behalf of the Company, Cenkos or the Investment Manager or any of their
respective directors, partners, officers, employees, agents or advisers or any
other person (whether or not referred to in this announcement) as to the
accuracy, completeness or fairness of the information contained herein and no
responsibility or liability is accepted by any of them for any such information
This announcement does not constitute or form part of, and should not be
considered as, any offer for sale of subscription of, or solicitation of any
offer to buy or subscribe for, any shares in the Company or securities in any
other 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 be
relied on in connection with, any contract or investment decision whatsoever,
in any jurisdiction.
Cenkos, which is authorised and regulated in the United Kingdom by the
Financial Conduct Authority, is acting as financial adviser and placing agent
to the Company in relation to the Issue and Admission and will not be
responsible to any other person for providing the protections afforded to
clients of Cenkos or for advising any other person on the contents of this
announcement or any matter, transaction or arrangement referred to herein.
FCA-authorised firms conducting designated investment business with retail
customers under COB Rules are reminded that securities admitted to trading on
the Specialist Fund Market will be securities that may have characteristics
such as: (i) variable levels of secondary market liquidity; (ii) sophisticated
corporate structures; (iii) highly leveraged structures; and (iv) sophisticated
investment propositions with concentrated risks and are therefore intended for
institutional, professional and highly knowledgeable investors. The Company and
its advisers not subject to the COB Rules are responsible for compliance with
equivalent conduct of business or point of sale rules in the jurisdiction in
which they are based or in which they are marketing the securities concerned
Terms used in this announcement shall have the same meanings given to them in
the prospectus of the Company which was published on 12 April 2013 unless the
context otherwise requires.