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NEWTOWN SQUARE, PA-GMH Associates plans an initial public offering on the NYSE under the symbol GCT at a date yet to be determined. The underwriters, led by Banc of America Securities and Merrill Lynch & Co., have set the terms of the pending IPO at 28.6 million shares of common stock at an estimated price range of between $13 and $15 per share. GMH is a nationwide owner and operator of student and military housing.

The locally based company is to be called GMH Communities Trust. This June, GMH filed an IPO to sell up to $250 million in common stock, but no terms were detailed at the time. The current terms were set in an amended form, filed with the SEC on October 18. The underwriters will have an option to buy an additional 4.3 million shares to cover over-allotments.

If the share price falls in the middle range of $14 per share, GMH Communities would have an initial market capitalization of $400.4 million with the possible addition of just over $60 million from the sale of the over-allotment. According to the SEC filing, GMH expects net proceeds, after costs, of approximately $365 million.

Also according to the filing, it plans to use $110.3 million to redeem New York-based Vornado Realty Trust’s interests in the company, $144.8 million to fund the acquisition of nine student housing properties and two undeveloped land parcels, repay $32.5 million of indebtedness to founder Gary M. Holloway, and for other acquisitions and working capital.

Holloway, who founded GMH in 1985, is to be chairman, CEO and president of GMH Communities Trust. The IPO does not include GMH Capital Partners, also based here, a real estate services firms in which GE Capital has an interest.

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