This article is from the Australian Property Journal archive
THE Charter Hall Social Infrastructure REIT is looking to raise $115 million to strengthen its balance sheet and ensure it can withstand any unexpected cash flow and valuation impacts due to the covid-19 pandemic.
The trust will undertake a fully underwritten institutional placement to raise $100 million and a non-underwritten unit purchase plan to raise up to $15 million.
Following the placement, CQE is forecast to have pro forma balance sheet gearing of 16.7%, down from 24.9% as at 31 December 2019 and pro forma look-through gearing of 18.3%, down from 26.3%. Cash and undrawn facilities is forecast to increase to $291.5 million.
The trust said it is currently well positioned to weather the covid-19 pandemic in the short to medium term given its long WALE portfolio, low exposure to smaller tenants, no near term debt expiries and the announcement of significant government support for the childcare sector.
“CQE will support impacted tenants under the new laws giving effect to the Commercial Code and will actively partner with our tenant customers to ensure sustainable and long-term outcomes. CQE will look to offset any short term rental relief provided during the pandemic period with longer term benefits to CQE including, but not limited to lease extensions.
“CQE will work with tenants on a case by case basis, having considered how COVID-19 has impacted their businesses, to agree an appropriate way forward.”
