Arena REIT reviews proposed tenant transfers for 22 centres

• The administrator of Edge Early Learning has signed agreements to sell 22 early learning centre businesses to six separate parties.
• Arena REIT is reviewing proposed lease assignments across seven owned properties, including transfers to Montessori Academy and three other operators.
• Rent continues to be received across all 27 Arena-owned properties occupied by Edge, backed by $4 million in security guarantees.

Arena REIT (ASX:ARF) announced that the administrator of Edge Early Learning has entered into binding agreements to sell 22 early learning centre businesses across six separate parties.

These sale agreements cover the remaining seven early learning centre businesses operated by Edge at properties owned by Arena REIT.

Arena REIT stated that it is undertaking due diligence on proposed lease assignments to four new tenants, including Montessori Academy for two South Australian properties and three operators across five Queensland locations.

The company stated that rent continues to be received on all 27 Arena-owned centres occupied by Edge, supported by approximately $4 million held in bank guarantees and security deposits.

Following the announcement, the Arena REIT share price was unchanged at $2.36.

The landlord maintains full legal rights regarding the Edge portfolio while conditional transactions undergo regulatory review and final documentation.

Arena REIT develops, owns, and manages social infrastructure properties in the early learning and healthcare sectors across Australia.