The ASX listed Arena Reit has raised A$120m (€72.4m) in a fully underwritten placement to finance the purchase of childcare and early learning centres in Australia, with a total value of A$92m.
The social infrastructure trust said it had exchanged contracts, entered heads of agreement or was in exclusive due diligence to acquire and develop additional properties.
Among the assets are six early learning centre (ELC) properties located throughout New South Wales that were purchased for A$58m. Arena Reit plans to develop four ELC projects, costing an estimated A$34m.
Following the latest transactions, Arena Reit will enlarge its social infrastructure portfolio to 282 assets, with an average weighted lease expiry of 18.2 years and valued at A$1.6bn.
“Arena has maintained capital management discipline through the cycle with consistent hedging programmes, extension of facility term and sustained capacity to deploy capital into growth opportunities consistent with strategy,” said Gareth Winter, Arena’s chief financial officer.
Arena’s managing director, Rob de Vos said: “Strong macroeconomic drivers continue to support growth in the demand for essential community services across Australia.
“These themes, combined with Arena’s disciplined origination, capital management and asset management expertise have positioned the business well to sustainably deliver on its purpose and investment objective of delivering predictable distributions to securityholders with the prospect for growth.”
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