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GCP Student asset values rise as it awaits CMA decision on takeover
4th Nov 2021 12:08
(Sharecast News) - Student accommodation investor GCP Student updated the market on its recommended acquisition on Thursday, reporting that the Competition and Markets Authority had been notified of the transaction, following shareholder approval in early September.
The FTSE 250 real estate investment trust said that as expected, the competition regulator was considering the acquisition by Scape Living and iQSA Holdco and the break-up as two separate transactions.
It launched its phase one merger inquiries into the two transactions on 19 October, with the current statutory deadline for the CMA being 13 December.
"On this basis, the acquisition is currently expected to become effective before the end of 2021 and, subject to the acquisition becoming effective, settlement of the cash consideration due under the scheme is expected to take place within 14 days of the effective date," the board said in its statement.
GCP Student said its EPRA net tangible assets per share as at 30 September totalled 198.29p, up from 195.05p at the end of June.
The valuation of the company's portfolio increased to £1.16bn during the quarter, which was an increase of 1.5%.
GCP said the valuation net initial yield on its operational portfolio was 4.29%, compared to 4.30% at the end of June.
As at 30 September, the portfolio consisted of 11 operational assets with around 4,100 beds, with about 81% by value located in and around London.
Bookings for the 2021-2022 academic year were currently at 82%, compared with 99% at the same point in 2019 - the most recent pre-pandemic year.
Of the booked rooms, 94% had been occupied by residents or were subject to leases or nominations agreements.
"In light of the offer to acquire the company and assuming the scheme becomes effective, the directors do not currently expect that any further dividends will be declared or paid to shareholders."
At 1148 GMT, shares in GCP Student Living were up 0.02% at 210.5p.
The FTSE 250 real estate investment trust said that as expected, the competition regulator was considering the acquisition by Scape Living and iQSA Holdco and the break-up as two separate transactions.
It launched its phase one merger inquiries into the two transactions on 19 October, with the current statutory deadline for the CMA being 13 December.
"On this basis, the acquisition is currently expected to become effective before the end of 2021 and, subject to the acquisition becoming effective, settlement of the cash consideration due under the scheme is expected to take place within 14 days of the effective date," the board said in its statement.
GCP Student said its EPRA net tangible assets per share as at 30 September totalled 198.29p, up from 195.05p at the end of June.
The valuation of the company's portfolio increased to £1.16bn during the quarter, which was an increase of 1.5%.
GCP said the valuation net initial yield on its operational portfolio was 4.29%, compared to 4.30% at the end of June.
As at 30 September, the portfolio consisted of 11 operational assets with around 4,100 beds, with about 81% by value located in and around London.
Bookings for the 2021-2022 academic year were currently at 82%, compared with 99% at the same point in 2019 - the most recent pre-pandemic year.
Of the booked rooms, 94% had been occupied by residents or were subject to leases or nominations agreements.
"In light of the offer to acquire the company and assuming the scheme becomes effective, the directors do not currently expect that any further dividends will be declared or paid to shareholders."
At 1148 GMT, shares in GCP Student Living were up 0.02% at 210.5p.