The GCP Student Living share price was the best performer on the London Stock Exchange (LSE) last week, according to the latest weekly market performance report from Saxo Markets. Here’s why investor appetite for this stock was strong and what the future holds.
What is GCP Student Living?
GCP Student Living is a student accommodation real estate investment trust (REIT). The company invests in modern private student residential accommodation and teaching facilities. It invests in properties located primarily in or around London.
GCP Student Living’s current portfolio consists of 11 assets with a total portfolio valuation of £1.06 billion. The company is part of the FTSE 250 and has been trading on the main market of the LSE since its IPO in 2013.
What is up with the share price of GCP Student Living?
Investors pushed the GCP Student Living share price up by 19% on the LSE last week, making it the best performing stock on the exchange.
After starting the month trading at lows of 160p, the company’s share price saw a dramatic gain in value last week, topping 197p at one point.
At the time of writing, the company’s shares are trading at around 193p.
Why did the share price of GCP Student Living go up?
The rise in the share price of GCP Student Living comes on the back of a takeover approach by a consortium comprised of two entities: Scape Living Plc and iQSA Holdco Limited. The two entities’ funds are managed by APG Asset Management, a Dutch pension fund that is also GCP’s biggest shareholder with an 11.1% stake.
GCP released a statement saying that it is in discussions with the consortium but is uncertain of whether an offer will actually be made. Under takeover rules, the consortium will have until 30 July to make a firm offer or abandon the deal.
Regardless, the news of the takeover was enough to trigger increased investor confidence, causing GCP’s share price to skyrocket and become the week’s biggest gainer on the LSE.
What other companies performed well?
Apart from GCP Student Living, Saxo Markets reports that the following companies also garnered significant gains last week:
- Vectura Group – 13.34%
- Morrison Supermarkets – 9.92%
- Watches of Switzerland Group – 9.70%
- Daily Mail and General Trust – 9.01%
- Airtel Africa – 7.69%
- Oxford Instruments – 7.66%
- James Halstead – 7.00%
Can I buy shares in GCP Student Living?
Because GC is a publicly traded company, you can purchase its shares with a share dealing account. Simply log in to your account, search for the company by name or ticker symbol (DIGS), and place your order.
However, if you are able to, consider buying using a stocks and shares ISA as this could save your investment growth and income from tax. But keep in mind that tax rules can change and tax treatment will depend on your individual circumstances.
Should I buy shares in GCP Student Living?
No one can predict with 100% certainty what will happen to the share price of GCP in the future. We don’t know whether the gains made last week will be sustained.
However, if the interested consortium goes on to make an offer, the company’s stock may gain even more value. At the same time, the rapid gains made last week could as easily be reversed if it becomes clear that an offer is not forthcoming.
The most critical thing before investing is to do your own research. Additionally, ensure that you only invest if the investment fits with your investment strategy. As always, if you are unsure about an investment’s suitability for your particular circumstances, seek professional advice first.