GCP Student Living : Exclusivity on new asset and potential fundraising

Released : 25/01/2017 07:00

                            GCP Student Living plc

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

              Exclusivity on new asset and potential fundraising

GCP Student Living plc is pleased to announce that it has entered into an
exclusivity arrangement in respect of the potential acquisition of a private
student residential accommodation asset.

Located in a prime central London position, the asset is in close proximity 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 Investment Manager has identified multiple asset management opportunities
in respect of the asset which, if acquired, will 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. It is 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.

The Investment Manager is currently conducting advanced due diligence on the
asset and is in advanced negotiations with the vendor.

In addition, the Investment Manager is currently reviewing other high quality
opportunities which may be suitable for the Company's portfolio and are in
locations which it believes benefit from the core supply/demand imbalance
characteristics which the Company seeks to identify in its potential
investments.

Accordingly, the Board is considering raising additional equity capital in
February 2017, targeting gross proceeds in excess of £60 million through a
non-pre-emptive issue of new ordinary shares (the 'Issue'). The price of the
Issue will be established by reference to the prevailing net asset value per
share and share price of the Company.

Any Issue would be conditional upon, inter alia, approval of the resolutions
proposed at the general meeting of the Company to be held on 31 January 2017,
as well as necessary regulatory approvals.

Further details as to the precise timing, price and quantum of the Issue, if
the Board resolves to proceed with the same, will be announced in due course.

For further information please contact: -

Gravis Capital Partners LLP                                 [phone]

Tom Ward                         [e-mail]

Nick Barker                      [e-mail]

Dion Di Miceli                   [e-mail]

Stifel Nicolaus Europe Limited                              [phone]

Neil Winward                     [e-mail]

Mark Young                       [e-mail]

Tom Yeadon                       [e-mail]

Buchanan                                                    [phone]

Charles Ryland                   [e-mail]

Vicky Watkins                    [e-mail]

About GCP Student Living plc

The Company was the first student accommodation REIT in the UK, investing in
modern, purpose-built, private student residential accommodation and teaching
facilities. Its investments are 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.

The Group has an estimated total asset value of c.£530 million comprising six
standing assets, providing c.2,000 modern studios and beds, and one forward
funded development assets which will provide a further c.580 beds on
completion.

The Company has successfully secured a further c.980 beds in and around London
through future contractual arrangements.

Its standing assets are primarily occupied by international students and offer
high specification facilities and hotel-level concierge type services which the
Investment Manager believes are attractive to overseas students.

Important Information

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

This announcement contains inside information for the purposes of Article 7 of
EU Regulation 596/2014. Upon the publication of this announcement, this inside
information is now considered to be in the public domain.

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.

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.