Charter Hall REIT to exit New Zealand, contracts to sell 20 ECEC properties
Charter Hall Social Infrastructure (CQE) has confirmed that it has contracted to sell its remaining 20 early childhood education and care (ECEC) centres in New Zealand in a deal that will mark the exit from the territory for the real estate investment trust (REIT).
The centres will be sold for NZD$40.1 million which represents a yield of 6.0 per cent, an improvement on the 6.6 per cent achieved on the sale of the first tranche of New Zealand assets announced in May 2020, but equal to the book value as at June 2020.
It is understood that these remaining centres are all tenanted by Best Start, New Zealand’s largest ECEC provider, and were said to be well located and predominantly purpose built.
Settlement is expected to occur in June 2021 and will leave Charter Hall with no exposure to New Zealand and a portfolio focused on Australia consisting of around 350 centres.
The REIT also confirmed the settlement of its latest non child care acquisition, the South Australian Government Emergency Services Command Centre, for $40.1 million and declared a dividend of 3.75 cents per unit for the quarter ended 31 December 2020.