GCP Student Living cancels deal to acquire Mile End development
GCP Student Living announced the termination of its conditional forward purchase agreement over the Scape Mile End Canalside development in London on Tuesday.
The FTSE 250 student-focussed real estate investment trust had entered into the agreement to acquire the development in October 2017.
It described Scape Mile End Canalside as a “high-specification”, 412-bed new-build asset adjacent to Queen Mary University of London, and in the same locality as its existing 588-bed Scape East asset.
“Whilst the directors continue to assess an investment in Scape Canalside, the conditions of the forward purchase agreement 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,” the board said in its 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, whilst maintaining the group's conservative borrowing levels, particularly in this period of uncertainty.”