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ARENA REIT. — Capital/Financing Update 2019
Feb 17, 2019
64418_rns_2019-02-17_3adb71bf-9022-4408-8095-1f0417ce1d58.pdf
Capital/Financing Update
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18 FEBRUARY 2019
ACQUISITION OF SPECIALIST DISABILITY ACCOMMODATION PORTFOLIO
Arena REIT (Arena) announces the acquisition of a portfolio of three specialist disability accommodation properties located in metropolitan Adelaide for a combined purchase price of $23.95 million. The properties are leased on a long term basis to SACARE, a leading provider of disability care and rehabilitation services in South Australia.
This acquisition is consistent with Arena’s strategy to grow and diversify its existing healthcare portfolio and further diversify its portfolio of social infrastructure property.
The investment will return an initial income yield of 6% on the purchase price and each of the leases have a 15 year initial term and the rent will be reviewed annually by CPI+0.5%.
Specialist Disability Accommodation (SDA) provides specialised solutions to people with a significant functional impairment and/or high support needs. SDA is funded by the National Disability Insurance Scheme (NDIS). It is estimated that approximately 28,000 NDIS participants will require SDA and it is expected that $700 million will be spent on SDA annually.[1]
Commenting on the acquisition, Arena’s Head of Property, Mr Rob de Vos said “We are pleased to have acquired this portfolio of high quality, specialised high care facilities which enable people with a disability to live enriched and fulfilled lives.”
Commenting on the partnership, SACARE’s Chairman Andrew Marshall and Technology and Development Manager Alex Marshall said “We look forward to working with Arena as a long term real estate capital partner, allowing us to focus on our core services of delivering high quality care to our clients.”
| Property | Description |
|---|---|
| The Gums –Salisbury SA | A purpose built state of the art property completed in late 2018 withcapacity for 20 clients. The facility offers high quality accommodationand rehabilitation services for clients who require 24 hour high care ortransition to supported living. |
| Briarholm House –Kingswood SA | The property was significantly refurbished in 2016 and has capacity fornine clients. The facility offers high quality accommodation andrehabilitation service for clients who require 24 hour high and complexcare. |
| Barton House –North Adelaide SA | A refurbished and extended property with capacity for six clients. Thefacility offers high quality accommodation for clients who require 24 hourhigh and complex care. |
1 KPMG Specialist Disability Accommodation Pricing and Payments Framework Review Final Report 3 December 2018
Arena REIT Limited (ACN 602 365 186) Arena REIT Management Limited (ACN 600 069 761 AFSL No. 465754) as responsible entity of Arena REIT No. 1 (ARSN 106 891 641) and Arena REIT No. 2 (ARSN 101 067 878) Level 5, 41 Exhibition Street Locked Bag 32002 Collins Street East Melbourne VIC 3000 Melbourne VIC 8003 www.arena.com.au [email protected]
Locked Bag 32002 Collins Street East T +61 3 9093 9000 Melbourne VIC 8003 Freecall 1800 008 494 [email protected] F +61 3 9093 9093
Arena REIT (ASX:ARF) ASX Announcement 18 February 2019
HY19 RESULTS
Arena is scheduled to announce HY19 results on 19 February 2019 please refer to www.arena.com.au for further details.
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For further information, please contact:
Sam Rist Head of Investor Relations +61 3 9093 9000 [email protected]
Arena REIT
Arena REIT is an ASX300 listed property group that owns, manages and develops social infrastructure property assets across Australia. Our current portfolio of social infrastructure property assets is leased to a diversified tenant base in the growing early learning and healthcare sectors. To find out more, visit www.arena.com.au
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