Unite has recently announced the successful completion of the Capital Raise – the Placing, Subscription and Retail Offer.
The Placing will enable Unite to continue to invest in its platform and enhance future earnings growth.
The company intends to use the net proceeds of the Capital Raise to commit to two new PBSA development schemes and accelerate asset management initiatives to enhance future returns.
A total of 32,693,930 new ordinary shares in the capital of the Company (the Placing Shares) were placed with institutional investors by J.P. Morgan Securities plc (which conducts its UK investment banking activities as J.P. Morgan Cazenove) and Numis Securities Limited, raising gross proceeds of approximately £296m. J.P. Morgan Cazenove and Numis acted as joint bookrunners in respect of the Placing.
Placing Shares have been issued at a price of 905 pence per Placing Share (the Placing Price).
The Placing Price represents a discount of 4.25% to the middle market closing price on 24 July 2023 of 945 pence.
Concurrently with the Placing, certain directors of the company have subscribed for an aggregate of 13,253 new ordinary shares in the capital of the Company (the Subscription Shares) at the Placing Price, raising gross proceeds of approximately £120,000.
In addition, concurrently with the Placing, retail investors have subscribed in the separate offer made by the Company via the PrimaryBid platform for a total of 441,989 new ordinary shares raising gross proceeds of approximately £4m.
Together, the Placing, Subscription and Retail Offer in aggregate comprised 33,149,172 new ordinary shares, raising gross proceeds of approximately £300m for the company.
“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.
“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.”
The Placing Shares, the Subscription Shares and the Retail Offer Shares (together, the New Ordinary Shares) being issued together represent approximately 8.2% of the existing issued ordinary share capital of the Company prior to the Capital Raise.
The company consulted with a significant number of its shareholders prior to the Placing and has respected the principles of pre-emption through the allocation process insofar as possible.
Unite is pleased by the strong support it has received from new investors and existing shareholders.
The New Ordinary Shares will, when issued, be credited as fully paid and rank pari passu with the existing ordinary shares in the capital of the company including the right to receive all future dividends and distributions declared, made or paid.
Applications have been made for the New Ordinary Shares to be admitted to the premium listing segment of the Official List of the Financial Conduct Authority (the FCA) and to trading on the main market of the London Stock Exchange plc.
It is expected that Admission will take place on 27 July 2023 and dealings in the New Ordinary Shares will commence at that time.
The Placing, Subscription and Retail Offer are conditional upon, inter alia, Admission becoming effective.
The Placing is also conditional upon the Placing Agreement not being terminated in accordance with its terms.
Each of the following directors of the company has agreed to subscribe for the number of Subscription Shares at the Placing Price opposite his or her name as set out below: