This article is from the Australian Property Journal archive
ASX-listed Arena REIT is looking to raise up to $140 million for the acquisition of a six childcare centres and four development sites, and has forecast distribution growth of 4.9% for FY2025.
Arena said it has exchanged contracts, entered heads of agreement or is in exclusive due diligence to acquire and develop additional social infrastructure properties with a total investment of $92 million. The figure includes $58 million on six early learning centres and four early learning centre development with a total anticipated project investment of $34 million.
To fund the purchase it is undertaking a fully underwritten $120 million institutional placement at an issue price of $3.78 per new stapled security – at a 4.5% discount to its previous close – that it says will provide capacity to pursue “further social infrastructure property investments”.
On completion of the institutional placement it will also offer a non-underwritten security purchase plan to raise up to $20 million. The issue price will be equal to that of the institutional placement,
Arena also issued a FY25 distribution guidance of 18.25c per security.
“Strong macroeconomic drivers continue to support growth in the demand for essential community services across Australia,” said Arena’s managing director, Rob de Vos.
“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.”
Arena REIT recorded no material change in its latest portfolio valuation. Prior to the new acquisitions, it had a portfolio of 276 properties worth a combined $1.579 billion, with a weighted average forecast yield of 5.4% and weight average lease expiry of 18.5 years.
