Unite Group PLC (LSE:UTG) said it has raised over £300 million in a placing and retail offer on the PrimaryBid platform to fund two developments and increase investment in its existing estate.
The student accommodation developer and operator said a total of 32,693,930 new ordinary shares were placed with institutional investors by JP Morgan and Numis Securities at 905p per share, a 4.2% discount to Monday’s close, raising £296 million.
As well as that, some directors, including chief executive Richard Smith, subscribed to 13,253 shares, raising £120,000.
Retail investors, in a separate offer via PrimaryBid, raised £4 million, the company said in a statement.
“The net proceeds will be used to commit to two additional developments, increasing our committed pipeline to over £600mln, as well as increasing investment into our existing estate through asset management projects, which will enhance returns,” Smith noted.
“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," he added.
It was the first time Unite has included retail investors in a fundraising, for which it used the PrimaryBid platform, where the funds were raised in the space of a few hours.
Existing shareholders and new investors were able to participate through PrimaryBid's website, app and through its partner network of investment platforms, retail brokers and wealth managers.