Camberwell (Victoria) Childcare Centre. Source: Charter Hall
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  • Charter Hall Social Infrastructure REIT (CQE) completed the acquisition of two childcare portfolios for a total purchase price of $134.3 million
  • The portfolio comprises 21 properties reflecting a passing yield of 4.6 per cent
  • The portfolio transaction acquisitions will be funded from CQE’s existing debt facilities
  • CQE is pleased to announce that its FY22 forecast distribution guidance has been increased by of 9.6 per cent
  • Charter Hall Social Infrastructure REIT (CQE) last traded at $3.80 per share before market open on December 22

Charter Hall Social Infrastructure REIT (CQE) completed the acquisition of two childcare portfolios for a total purchase price of $134.3 million.

The portfolio comprises 21 properties, with the purchase price reflecting a passing yield of 4.6 per cent.

The portfolio includes eighteen operating childcare centres located throughout Western Australia.

The Western Australian portfolio has a current weighted average lease expiry of 12.5 years and a weighted average rental review of 3.4 per cent with $4.6 million of the rental income underpinned by, Goodstart Early Learning Limited and G8 Education (GEM).

The portfolio comprises a total combined site area of 47,157 sqm, providing accommodation for 1,752 long daycare places.

Three properties in Victoria will have three newly constructed modern childcare centres located in metropolitan Melbourne, providing accommodation for 345 long daycare places.

The portfolio will be 100 per cent leased to Nino Early Learning for an initial term of 20 years, on a triple net lease structure, with fixed annual rent reviews of three per cent.

The total purchase price of $34.3 million reflects a purchase yield of 4.5 per cent.

The portfolio transaction acquisitions will be funded from CQE’s existing debt facilities.

CQE increased its debt facilities to $700 million with the additional $100 million being provided by an existing financier.

This will provide CQE with an investment capacity of approximately $120 million after adjusting for these portfolio acquisitions and other contractual commitments.

CQE also announces its FY22 forecast distribution guidance has been increased by 9.6 per cent from FY21.

CQE will continue to pay quarterly distributions and has previously announced the December quarter distribution of 4.225 cents per unit, which will be paid on 21 January 2021.

Charter Hall Social Infrastructure REIT (CQE) last traded at $3.80 per share before the market open on December 22.

CQE by the numbers
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