GCP Student Living

GCP Student Living PLC was a United Kingdom-based real estate investment trust (REIT) that focused on student residential assets. The company was established in May 2013 and was admitted to trading on the London Stock Exchange, initially on the Specialist Fund segment of the Main Market, before transitioning to the Premium segment in September 2016. As the first REIT in the UK to concentrate on the specialist property asset class of purpose-built student accommodation (PBSA), GCP Student Living PLC aimed to provide shareholders with attractive total returns over the longer term. Gravis Capital Management Limited served as the company's investment manager.

The company's investment strategy primarily targeted high-quality, modern, private student accommodation located in and around London. This strategic focus on the London market accounted for approximately 95% of the investment portfolio's value, driven by the belief that the region offered significant supply and demand imbalances for student residential accommodation. Beyond the capital, GCP Student Living PLC also identified other UK cities, including Bath, Bristol, Brighton, Oxford, and Cambridge, as possessing favorable supply and demand dynamics for student housing that mirrored those found in London. The firm sought to capitalise on a growing student population, particularly international students, and the limited supply of modern PBSA in these key university locations.

Throughout its operational period, GCP Student Living PLC developed a substantial portfolio of student accommodation assets. At various times, the portfolio comprised approximately 11 assets, providing between 4,100 and 4,116 beds. Notable properties within its portfolio included Scape Shoreditch, Scape Bloomsbury, Scape Wembley, Circus Street in Brighton, Scape Greenwich, Scape Brighton, The Pad in Egham, Podium also in Egham, Scape Guildford, and Water Lane Apartments in Bristol. The company consistently reported high occupancy rates, with its portfolio predominantly fully occupied since its initial public offering. This strong occupancy was often accompanied by an average annual student rental growth, which reached approximately 3.7% by December 2020.

The core investment objective of GCP Student Living PLC was to deliver attractive total returns to its shareholders. This objective was pursued through the potential for modest capital appreciation of its property assets and the distribution of regular, sustainable, long-term dividends. These dividends were designed to feature inflation-linked income characteristics, aiming to provide a stable and growing income stream for investors. The company's emphasis on high-quality assets situated in undersupplied markets was central to achieving these financial objectives, leveraging the robust demand within the purpose-built student accommodation sector.

In July 2021, a consortium backed by funds managed by APG Asset Management and The Blackstone Group made an offer to acquire GCP Student Living PLC, valuing the company at £969 million. The transaction received sanction from the High Court in December 2021, leading to the acquisition of the company. Following the acquisition, the portfolio of 11 student accommodation properties, located across London and the South of England, was divided between the consortium members. Six of these properties were transferred to iQ Student Accommodation, while the remaining five properties were transferred to Scape Living, marking the conclusion of GCP Student Living PLC as an independent entity.