Arena REIT diversification continues with disability accommodation acquisitions
ASX 300-listed real estate investment trust Arena REIT has acquired a portfolio of three specialist disability accommodation properties located in metropolitan Adelaide.
The acquisitions mark the first investments by the company into Specialist Disability Accommodation, a sector that provides specialist solutions to individuals suffering from significant functional impairments and/or high-support needs, and is funded by the National Disability Insurance Scheme (NDIS).
The total price paid for the three properties was $23.95 million, and the investment is expected to generate an initial income yield of 6.0 per cent per annum on the purchase price.
The properties, located in Adelaide suburbs of Salisbury, Kingswood and North Adelaide, are currently leased on a long-term basis to SACARE, a leading family-owned provider of disability care and rehabilitation services in South Australia, and have a combined capacity to accommodate and rehabilitate 35 clients.
Commenting on the acquisition, Arena’s Head of Property 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.”
Arena is currently the second largest listed landlord of early learning centres in Australia. As at the 30 June 2018 the company owned 207 centres as well as a portfolio of seven healthcare properties.