GCP STUDENT LIVING : Exclusivity on new asset and potential fundraising

                                GCP Student Living plc                             

             (the "Company", together with its subsidiaries, the "Group")          

                  Exclusivity on new asset and potential fundraising               

    GCP Student Living plc is pleased to announce that it has entered into an
    exclusivity arrangement in respect of the potential acquisition of a private
    student residential accommodation asset.

    Located in a prime central London position, the asset is in close proximity to
    many of London's top universities, and benefits from excellent transport links
    and the local area's vibrant mix of culture, bars, restaurants, public spaces
    and shops.

    The Investment Manager has identified multiple asset management opportunities
    in respect of the asset which, if acquired, will be refurbished offering
    c.400-500 studios and beds to the high specification typical of the Group's
    standing assets and the Scape Student Living brand. It is currently envisaged
    that the refurbishment would be completed ahead of the 2018/19 academic year.

    Post the refurbishment, the asset would have a net initial yield consistent
    with the Group's standing assets and the Investment Manager would expect it to
    be, on full occupancy, earnings and dividend cover accretive.

    The Investment Manager is currently conducting advanced due diligence on the
    asset and is in advanced negotiations with the vendor.

    In addition, the Investment Manager is currently reviewing other high quality
    opportunities which may be suitable for the Company's portfolio and are in
    locations which it believes benefit from the core supply/demand imbalance
    characteristics which the Company seeks to identify in its potential
    investments.

    Accordingly, the Board is considering raising additional equity capital in
    February 2017, targeting gross proceeds in excess of £60 million through a
    non-pre-emptive issue of new ordinary shares (the "Issue"). The price of the
    Issue will be established by reference to the prevailing net asset value per
    share and share price of the Company.

    Any Issue would be conditional upon, inter alia, approval of the resolutions
    proposed at the general meeting of the Company to be held on 31 January 2017,
    as well as necessary regulatory approvals.

    Further details as to the precise timing, price and quantum of the Issue, if
    the Board resolves to proceed with the same, will be announced in due course.

    For further information please contact: -

    Gravis Capital Partners LLP                                 [phone] 
                                                                                 
    Tom Ward                         [e-mail]                          
                                                                                 
    Nick Barker                      [e-mail]                       
                                                                                 
    Dion Di Miceli                   [e-mail]                     
                                                                                 
    Stifel Nicolaus Europe Limited                              [phone] 
                                                                                 
    Neil Winward                     [e-mail]                     
                                                                                 
    Mark Young                       [e-mail]                       
                                                                                 
    Tom Yeadon                       [e-mail]                       
                                                                                 
    Buchanan                                                    [phone] 
                                                                                 
    Charles Ryland                   [e-mail]                    
                                                                                 
    Vicky Watkins                    [e-mail]                   

    About GCP Student Living plc

    The Company was the first student accommodation REIT in the UK, investing in
    modern, purpose-built, private student residential accommodation and teaching
    facilities. Its investments are located primarily in and around London where
    the Investment Manager believes the Company is likely to benefit from supply
    and demand imbalances for student residential accommodation.

    The Group has an estimated total asset value of c.£530 million comprising six
    standing assets, providing c.2,000 modern studios and beds, and one forward
    funded development assets which will provide a further c.580 beds on
    completion.

    The Company has successfully secured a further c.980 beds in and around London
    through future contractual arrangements.

    Its standing assets are primarily occupied by international students and offer
    high specification facilities and hotel-level concierge type services which the
    Investment Manager believes are attractive to overseas students.

    Important Information

    The content of this announcement has been prepared by, and is the sole
    responsibility of, GCP Student Living plc.

    This announcement contains inside information for the purposes of Article 7 of
    EU Regulation 596/2014. Upon the publication of this announcement, this inside
    information is now considered to be in the public domain.

    The information contained in this announcement is given at the date of its
    publication (unless otherwise marked) and is subject to updating, revision and
    amendment from time to time. Neither the content of the Company's website nor
    any website accessible by hyperlinks to the Company's website is incorporated
    in, or forms part of, this announcement. 

    None of the Company, Gravis Capital Partners LLP or Stifel Nicolaus Europe
    Limited, or any of their respective affiliates, accepts any responsibility or
    liability whatsoever for or makes any representation or warranty, express or
    implied, as to this announcement, including the truth, accuracy or completeness
    of the information in this announcement (or whether any information has been
    omitted from the announcement) or for any loss howsoever arising from any use
    of the announcement or its contents. The Company, Gravis Capital Partners LLP
    and Stifel Nicolaus Europe Limited, and their respective affiliates,
    accordingly disclaim all and any liability whether arising in tort, contract or
    otherwise which they might otherwise have in respect of this announcement or
    its contents or otherwise arising in connection therewith.