GCP Student Living has raised £19m in a placing of its shares and has used the proceeds to buy a student accommodation block in Bristol. The Placing was significantly oversubscribed and the placing price was 135 pence.
GCP Student Living has exchanged contracts to acquire Water Lane Apartments, a modern, private student accommodation residence located in a prime city centre location in Bristol. The
Property is within walking distance of the main line railway station, city centre shopping and Bristol University. The city of Bristol serves c.49,000 students across both Bristol University and the University of the West of England.
The Property comprises 153 studio beds, which are fully occupied on 51-week lettings for the 2015/16 academic year, and associated communal areas including a gym, common and study rooms, and a cinema.
The purchase price for the Property is approximately £18.3 million. The acquisition of the Property is expected to complete on or around 15 February 2016 and will be funded wholly from the net proceeds of the Placing. Following its acquisition, the property portfolio of the Group will increase to c.2,000 beds with an estimated, unaudited, gross asset value of c.£418.8 million.
Following the acquisition, the Group’s debt to property value will be approximately 31%.
DIGS : GCP Student Living buys Bristol block with placing proceeds