GCP Student Living New debt facility
December 21 2018 - 9:43AM
UK Regulatory
TIDMDIGS
GCP Student Living plc
("GCP Student" or the "Company", together with its subsidiaries the "Group")
LEI: 2138004J4ID66FK38H25
New debt facility
GCP Student, the UK's first REIT focused on student residential assets, today
announces that on 20 December 2018 the Company entered into an agreement with
Wells Fargo Bank N.A. in respect of a new borrowing facility (the "Development
Facility").
The Development Facility is for an amount of up to GBP55 million which is
currently intended will be drawn over time to partly fund the construction of
the Group's forward funded Scape Brighton. This is expected to become
operational for the 2020/2021 academic year. The Development Facility has a
margin during the construction phase of Scape Brighton of 3.1% per annum above
LIBOR (reducing to 2% once the asset is operational and stabilised). It is
repayable on 21 December 2021 with an option to extend by a further 12 months
(at the Company's discretion, subject to certain conditions being met) and will
be solely secured against Scape Brighton.
Accordingly, the Group's available banking facilities total GBP335 million. These
facilities include the drawn fixed interest rate term facilities with PGIM Real
Estate Finance for an aggregate amount of GBP235 million which are secured
against certain of the Group's operational assets and has a weighted average
term of 7 years. In addition, the Group has GBP100 million of floating rate
borrowing facilities with Wells Fargo Bank N.A,. (which are undrawn as at the
date of this announcement) comprising the Development Facility and the Group's
GBP45 million redrawable credit facility. The redrawable credit facility is
expected to be used mainly to complete the construction of the Group's Circus
Street asset, which remains on track for completion in September 2019 and for
general corporate purposes from time to time.
The Group's current blended cost of borrowing on its drawn debt is 2.96% with
an average weighted maturity of 7 years. The loan-to-value of the Group is
approximately 25%.
For further information please contact:
Gravis Capital Management Limited +44 020 3405 8500
Tom Ward
Nick Barker
Dion Di Miceli
Stifel Nicolaus Europe Limited +44 020
7710 7600
Neil Winward
Mark Young
Tom Yeadon
Buchanan / Quill +44
020 7466 5000
Helen Tarbet
Henry Wilson
About GCP Student
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.
GCP Student's property portfolio comprises ten assets with c.3,600 beds,
including one asset which is expected to complete construction for the 2019/20
academic year. At 30 September 2018, its property portfolio was valued at GBP
816.8 million.
The Company's standing properties are predominantly 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.
END
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