GCP Student Living, part of the infrastructure investment firm Gravis Capital Partners, said yesterday it will this week seek to raise £50m from investors ahead of a flotation on the London Stock Exchange on 17 May.
If successful, it will be the first real estate investment trust (Reit) focussed on student property in the UK, tapping into growing demand from international students flocking to London to study.
The company said it expects an annualised return of 5.5 per cent in the first financial year and a total return of up to ten per cent in the longer term.
GCP said it will invest in student buildings developed by Scape Living, its joint venture company with Grosvenor House, which is pushing ahead with plans to build 2,000 student beds in central London over the next three years.
It launched its first 600-bed student campus in Mile End in September last year and 300 beds are under construction on the Greenwich Peninsula, which are due for completion in September 2013.