Conygar Investment Co PLC on Wednesday said a wholly owned subsidiary has entered into new development and investment facilities of up to £47.5 million.

The property investor and developer said the facilities will allow the completion of the construction and subsequent subletting of a 693-bed student accommodation at the Island Quarter site in Nottingham.

The maximum term of the combined facilities is three years. Conygar has provided cost overrun and interest shortfall guarantees of up to £5 million in connection with the development facility.

Conygar also announced on Wednesday that it aims to raise £30 million of additional capital through the issue of zero dividend preference shares through a placing in early 2023.

The ZDP shares are expected to have a gross redemption yield equivalent to 7.5% per year on the placing price and a term of five years.

The net proceeds are expected to be used to further the development of the Island Quarter in Nottingham, but may also be used for further acquisitions of investment properties.

Shares in Conygar were untraded at 133.55 pence on Wednesday in London.

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