GCP Student Living New debt facility

 
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                            [phone] 
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 
 

(END) Dow Jones Newswires

December 21, 2018 10:43 ET (15:43 GMT)