Arena REIT Announces Completion Of Eight Early Learning Centre Development Projects
December 3, 2020 – Arena REIT annuonced the expected completion of eight existing Early Learning Centre (ELC) development projects for a total cost of A$41 million (US$ 30.4 million) at an average initial yield on all costs of 6.7% with a weighted average initial lease term of 20 years.
Arena’s Head of Property, Mr Stuart Andrews said “Despite the external challenges of the past six months, it has been another active period for Arena and we remain on track to complete 14 high quality ELC development projects with our tenant partners in FY21.”
Arena also announced the acquisition of seven established ELCs for a total cost of A$40.3 million (US$29.8 million) at a net initial yield on all costs of 6.1%, all leased to existing Arena tenant partners with a weighted average initial lease term of 27.3 years.
Arena has also disposed of three ELCs in regional Queensland for A$7.1 million (US$5.26 million), a 16.1% premium to book value.
The acquisitions and development completions, net of the disposed properties, account for a net capital deployment anticipated to be approximately A$75 million (US$55.6 million) at an average yield on all costs of 6.4%.
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