DIGS.L Regulatory News (DIGS)

GCP STUDENT LIVING PLC - Result of Placing

PR Newswire

London, May 19

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GCP STUDENT LIVING PLC

(the "Company", together with its subsidiaries, the "Group")

RESULT OF PLACING

On 10 May 2016 the Company announced a placing of ordinary shares (the “Placing Shares”) seeking to raise gross proceeds in excess of £50 million (the "Placing"). Further to that announcement, the Board is pleased to announce that it has received applications from investors materially exceeding the minimum target gross proceeds. In light of the available investment opportunities in the nearer term, the Board has resolved to accept applications in respect of 44,085,232 Placing Shares at 136.10 pence per Placing Share, raising gross proceeds of £60 million for the Company. Investor demand exceeded this supply and as such a scaling back exercise has been undertaken.

It is intended that the net proceeds of the Placing will be used to acquire, in the near term, a modern student residential accommodation asset comprising 530 modern studios and beds located in a city centre position in close proximity to a globally recognised UK university. The asset benefits from a long-term nominations agreement with the university which guarantees underlying rental income.

The Investment Manager, Gravis Capital Partners LLP, continues to conduct due diligence on assets in a number of locations, including London, totalling c.1,700 beds and which it believes will benefit from attractive and sustainable rental growth underpinned by supportive supply/demand characteristics. The Group benefits from a conditional agreement to acquire a high specification, purpose-built, private student accommodation residence adjacent to Royal Holloway, University of London. The property is expected to be completed for the 2017/18 academic year providing approximately 170 beds. It is in the same locality as the Company’s existing ‘The Pad’ asset.

Following the issue of these Placing Shares, the Company will have authority remaining under the Placing Programme to issue a further 20,914,768 ordinary shares.

Application has been made for 44,085,232 Placing Shares to be admitted to trading on the Main Market of the London Stock Exchange (Specialist Fund Segment) (“Admission”). It is expected that Admission and dealings in these Placing Shares will commence at 8.00 a.m. (London time) on 24 May 2016.

Commenting on the fundraising, Robert Peto, Chairman, said:

"The Board is pleased with the support for the Placing shown by existing shareholders and welcomes several new investors to the Company. In particular, we are grateful for this support at a time when several established listed funds are seeking to raise equity capital.

Broadening the investor base should enhance market liquidity of the Company in the secondary market and enable the Company to take advantage of current investment opportunities identified by the Investment Manager.”

Commenting on the fundraising, Nick Barker, co-lead portfolio manager said:

“This successful capital raise will enable us to broaden the Company’s asset base through further investment in modern student residential assets. We continue to see high quality opportunities in the student residential accommodation market which we believe are strongly positioned to benefit from the core supply/demand imbalance characteristics which the Company seeks to identify in potential investments, and which should support rental growth from its assets over the long term.”

Immediately following Admission, the Company will have 261,795,015 ordinary shares in issue and therefore the total voting rights in the Company will be 261,795,015. This figure may be used by shareholders as the denominator for the calculations by which they may determine whether or not they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.

Capitalised terms used but not defined in this announcement will have the same meaning as set out in the prospectus published by the Company on 29 April 2016.

For further information, please contact:

Important Information

The content of this announcement has been prepared by, and is the sole responsibility of, GCP Student Living plc.

The information contained in this announcement is given at the date of its publication (unless otherwise marked) and is subject to updating, revision and amendment from time to time. Neither the content of the Company's website nor any website accessible by hyperlinks to the Company's website is incorporated in, or forms part of, this announcement. The distribution of this announcement and any other documentation associated with the Placing into jurisdictions other than the United Kingdom may be restricted by law. Persons into whose possession these documents come should inform themselves about and observe any such restrictions. Any failure to comply with these restrictions may constitute a violation of the securities laws or regulations of any such jurisdiction. In particular, such documents should not be distributed, forwarded to or transmitted, directly or indirectly, in whole or in part, in, into or from the United States, Australia, Canada, Japan or the Republic of South Africa or any other jurisdiction where to do so may constitute a violation of the securities laws or regulations of any such jurisdiction.

Stifel Nicolaus Europe Limited, which is authorised and regulated by the Financial Conduct Authority, is acting only for the Company in connection with the matters described in this announcement and is not acting for or advising any other person, or treating any other person as its client, in relation thereto and will not be responsible for providing the regulatory protection afforded to clients of Stifel Nicolaus Europe Limited or advice to any other person in relation to the matters contained herein.

None of the Company, Gravis Capital Partners LLP or Stifel Nicolaus Europe Limited, or any of their respective affiliates, accepts any responsibility or liability whatsoever for or makes any representation or warranty, express or implied, as to this announcement, including the truth, accuracy or completeness of the information in this announcement (or whether any information has been omitted from the announcement) or for any loss howsoever arising from any use of the announcement or its contents. The Company, Gravis Capital Partners LLP and Stifel Nicolaus Europe Limited, and their respective affiliates, accordingly disclaim all and any liability whether arising in tort, contract or otherwise which they might otherwise have in respect of this announcement or its contents or otherwise arising in connection therewith.