GCP Student Living PLC Covid-19 Update (6433M)
January 22 2021 - 7:18AM
UK Regulatory
TIDMDIGS
RNS Number : 6433M
GCP Student Living PLC
22 January 2021
GCP Student Living plc
("GCP Student" or the "Company", together with its subsidiaries
the "Group")
LEI: 2138004J4ID66FK38H25
Covid-19 Update
The Directors of GCP Student, the only UK REIT focused on
modern, purpose-built private student accommodation in and around
London, continue to monitor events as they relate to the Covid-19
pandemic.
The pandemic has resulted in ongoing international and national
travel restrictions and is impairing the ability of many students
to occupy their rooms. The Group's buildings remain operational
with the Directors and Investment Manager remaining focused on
ensuring the wellbeing of residents and staff by providing a safe
and secure environment in-line with government regulations.
Throughout this challenging time, the Company has supported its
residents through both the award-winning service and pastoral care
offered by the Property Managers. In April 2020, the Company
released vacating students from their rental obligations as
Universities closed. For the 2020/21 academic year, the Company
allowed flexible start dates for students linked to their ability
to travel and to university course start dates. Residents were also
offered a four week rent free stay prior to the start of their
tenancy to quarantine following international travel.
In light of the recent changes in government guidance which has
made it difficult for many of the Group's residents to occupy their
rooms at the present time, the Directors have decided that it is in
the long term interests of the Company to offer some additional
rental concessions to its direct let student residents. Students
will be able to apply for up to 100% rental concession for a
six-week period, commencing on 5 January 2021. This is subject to
certain conditions including the students not occupying their room
during this period and being up to date on any rents owed,
including the payment of their rent for this term which was due on
12 January 2021. Any rental concession will be applied to the
student's final instalment for the academic year which is due in
April 2021. The Company receives direct let income in three
tranches for each academic year of which the final 20-30% is
expected to be received in April in the current academic year.
Further, in line with normal policy, the Directors will continue to
carefully consider situations where the Group's residents are
suffering financial hardship on a case-by-case basis.
The Directors believe that this time limited rental concession
aligns the Group's rental policies with several of its competitors
in the private student accommodation market. Importantly the
Company's willingness to offer rental concessions demonstrates to
students, the Group's current and future customers, that it
continues to support them in this difficult period. Based on the
number of rooms which have been booked but which remain unoccupied,
the Company estimates the maximum loss of rental income arising
from this rent concession to be approximately GBP1.9 million
(c.0.43 pence per share).
For further information please contact:
Gravis Capital Management Limited +44 020 3405 8500
Nick Barker
Joe McDonagh
Buchanan / Quill +44 020 7466 5000
Helen Tarbet
Henry Wilson
About GCP Student
The Company is t he only UK REIT focused on modern,
purpose-built private student accommodation in and around London
.
Its investments are located 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 eleven assets with c.4,100 beds. At 30
September 2020, its property portfolio was valued at GBP1.01
billion.
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