Arena REIT to raise $120m to fund new acquisitions
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The news: Arena REIT is raising $120 million through an institutional placement to fund the acquisitions of 10 new early learning centre (ELC) assets.
The numbers: The placement will be undertaken at an issue price of $3.78 per share, a discount to Arena's last closing price of $3.96. The company will also offer a non-underwritten security purchase plan to raise up to $20 million.
The equity raising will support $92 million worth of new acquisitions, comprising six ELC properties for $58 million and four ELC developments with a total anticipated project investment of $34 million.
Arena also issued FY25 distribution guidance of 18.25 cent per security, up 4.9% on FY24.
The context: Arena said the placement will fund the acquisitions, as well as maintain balance sheet capacity to accommodate pipeline growth and execute future opportunities.
What they said: 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," he said.
The source: ASX announcement
