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GCP STUDENT LIVING PLC - First Day of Dealings

Monday, May 20, 2013 2:00 AM


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 Exchange ("CISX").

The Shares will trade under the ticker "DIGS" (ISIN: GB00B8460Z43) and have also 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 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 structure."

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        stephen.ellis@gcpuk.com      020 7518 1495
Tom Ward             tom.ward@gcpuk.com           020 7518 1496

Cenkos Securities plc

Tom Scrivens         tscrivens@cenkos.com         +44 (0)20 7397 1915
Charlie Ricketts     cricketts@cenkos.com         +44 (0)20 7397 1910
Dion Di Miceli       ddimiceli@cenkos.com         +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 888 900
Limited

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 income.

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 or opinions.

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 (if applicable).

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.

(Source: PR Newswire )
(Source: Quotemedia)

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