StockMarketWire.com - GCP Student Living's board is considering raising over £60m.

The company said it had entered into an exclusivity arrangement over the potential acquisition of a private student residential accommodation asset and the investment manager was reviewing other high quality opportunities.

The company said that the exclusivity arrangement concerned a property located in prime central London position.

It is close to many of London's top universities and benefits from excellent transport links and the local area's vibrant mix of culture, bars, restaurants, public spaces and shops.

The company said the investment manager had identified multiple asset management opportunities in respect of the asset which, if acquired, would be refurbished offering c.400-500 studios and beds to the high specification typical of the group's standing assets and the Scape Student Living brand.

The company said it was currently envisaged that the refurbishment would be completed ahead of the 2018-19 academic year.

Post the refurbishment, the asset would have a net initial yield consistent with the group's standing assets and the investment manager would expect it to be, on full occupancy, earnings and dividend cover accretive.

It said the investment manager was currently conducting advanced due diligence on the asset and was in advanced negotiations with the vendor.

It said the investment manager was also currently reviewing other high quality opportunities which may be suitable for the company's portfolio and accordingly, the board was considering raising additional equity capital in February, targeting gross proceeds in excess of £60 million through a non-pre-emptive issue of new ordinary shares.


At 9:48am: [LON:DIGS] GCP Student Living Plc share price was +0.25p at 143.5p



Story provided by StockMarketWire.com