GCP backs off deal to buy London student digs project

UK REIT GCP said this week that it has failed to meet the conditions of a special purpose agreement to acquire Scape Mile End Canalside in London, bringing an end to its exclusivity period to acquire the development.

GCP first agreed to the forward funding transaction back in October 2017, for a volume of around £90 mln.

‘While the directors continue to assess an investment in Scape Canalside, the conditions of the FPA have not been satisfied and therefore the company's right to acquire the asset under its terms have now lapsed and the vendor is no longer required to sell the asset to the Company,’ GCP said in a statement.

In light of the disruption caused by the Covid-19 pandemic the directors continue to assess whether the acquisition on an arm's length basis of Scape Canalside may be funded while maintaining the group's conservative borrowing levels, particularly in this period of uncertainty, it added.

The high-specification, 412-bed, new-build asset is located immediately adjacent to Queen Mary University of London and in the same locality as the Group's existing 588-bed Scape East asset.