(Sharecast News) – Student accommodation specialist Unite Group announced the successful completion of its capital raise on Tuesday, raising gross proceeds of £300m for two new developments, and to expand the company’s pipeline.
The FTSE 250 firm said the placing involved 32,693,930 new shares being placed with institutional investors by, raising gross proceeds of around £296m.
It said the shares were issued at a price of 905p each, representing a discount of 4.2% to the middle market closing price on 24 July.
In conjunction with the placing, some of the company’s directors subscribed for a total of 13,253 new shares at the placing price, raising about £0.12m.
Additionally, retail investors showed interest in the separate offer made by the company via the PrimaryBid platform, subscribing to 441,989 new shares at the placing price, and raising gross proceeds of around £4m.
Collectively, the placing, subscription and retail offer shares would represent 8.2% of the firm’s existing issued ordinary share capital prior to the raise.
“The successful completion of this fundraise is further evidence of the strong investor support for Unite, our future prospects and the structurally attractive supply and demand dynamics of the student accommodation sector,” said chief executive officer Richard Smith.
“The net proceeds will be used to commit to two additional developments, increasing our committed pipeline to over £600m, as well as increasing investment into our existing estate through asset management projects, which will enhance future returns.
“These investments will allow Unite to continue to play a major role in creating new supply of high quality, affordable accommodation where the need is greatest, as well as supporting the growth of our university partners.”
Reporting by Josh White for Sharecast.com.