Arena REIT has renegotiation lease terms with Goodstart Early Learning on 87 properties across Australia to resolve market rents, increase lease terms and add renewable solar systems to the portfolio.
The solar system installations will benefit Goodstart through the reduction in ongoing energy costs and is expected to reduce CO2 emissions by approximately 1,000tonnes per annum.
Goodstart’s Chief Executive Officer, Julia Davison said the savings from using renewable energy could be spent on children and their education. “We’re very excited about this initiative. As a not for profit provider every dollar we can save from reducing our power costs means we have more money to put back into our centres and the children they support.”
Arena’s Managing Director, Mr Rob de Vos said the organisations were pleased to have collaborated on such an important issue. “Goodstart was founded on a vision of giving children the best possible start in life through access to quality early learning, and we are working towards giving children the best possible future by this commitment to reducing carbon emissions.”
The 25 year lease term increase across the Goodstart asset increases Arena’s portfolio proforma WALE as at 30 June 2021 to 20.1 years compared with 14.7 years at HY21.
All FY20, FY21 and FY22 market rent reviews have been agreed at an average increase of 6.5%. Prior period market rent reviews are back dated to apply from the scheduled review date.
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