Brexit and uncertain outlook for travel persuades GCP Student Living to accept €1.13b takeover

GCP Student Living, the listed property company, has accepted a takeover approach by a consortium comprising Scape and IqSA backed by APG Asset Management and Blackstone.

The cash offer for 213 pence per share values the deal at £969 mln (€1.13 bn).

Board members said they deemed the offer reasonable and added the company had factored in increasingly positive news flow in recent months, most notably to do with Covid-19 vaccines in the UK, and the extremely strong appetite for Purpose Built Student Accommodation (PBSA).

‘However, the GCP board has tempered these factors with a recognition that, because of the continued global impact on travel caused by the Covid-19 pandemic and the effect of Brexit on student movement from the EU, there remains considerable uncertainty on occupancy levels for at least one further academic year and possibly beyond,’ it said.

‘Consequently, whilst the GCP board remains confident in the standalone prospects for GCP, having negotiated several improved proposals from the consortium the GCP board believes that the acquisition allows shareholders to capture anticipated future value today, whilst eliminating the associated uncertainties.’

GCP is a FTSE 250 listed company.

It was the first student accommodation REIT to be listed on the London Stock Exchange. It manages 4,116 beds. 




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