GCP Student Living Plc is seeking shareholder approval for the issuance of up to 200 million shares for cash on a non-pre-emptive basis over the course of its new share placing program for 2017.
The issue of shares under the program may take the form of a series of placings and/or open offers and/or offers for subscription. The minimum price of the share placing will be equal to the prevailing published net asset value per share at the time of allotment, together with a premium intended to cover the costs and expenses of the issuance.
GCP intends to raise additional capital from the share issuance in order to be able to "take advantage of current and future investment opportunities," according to a company release. It will attempt to target purchases of assets that provide strong rental growth potential, in order to add diversity to its portfolio.
The company said it secured the opportunity to acquire the Scape Wembley and Podium assets in London, two large scale student residential accommodation assets. The properties will provide approximately 750 modern studios and beds upon completion.
The company is also carrying out due diligence on approximately 2,000 studios and beds, of which 450 are still under negotiation with respective sellers. Additionally, GCP's right of first offer arrangement with Scape Student Living is expected to expand the company's pipeline with further assets.
The resolution for the share issuance will be proposed at a general meeting, which will be held Jan. 31.