Charter Hall Raises $120m to Expand Education Assets

Charter Hall has completed a capital raising for the acquisition of 13 early learning centres, increasing the size of its placement from $100 million to $120 million due to “significant investor demand” in the sector.

The portfolio was struck on a deal worth $75.5 million.

The listed Charter Hall Education Trust said the additional proceeds raised will initially be used to repay debt and cover associated transaction costs.

As a result of the placement, 35,820,896 new units will be issued at a price of $3.35 per unit.

The new units are expected to settle on Friday.

The new portfolio includes a 100 per cent freehold interest in the 13 early learning properties, the majority of which are located in prime, inner-ring, metropolitan suburbs.

Related: Charter Hall’s Industrial Fund Surpasses $6.1bn

Charter Hall said the centres, a mixture of which are both new and under development, are located across three states: Victoria, New South Wales and Queensland.

The new portfolio has an average lease expiry of 17.9 years which will increase the trust's average lease expiry to 10.1 years.

Charter Hall Education Trust, managed by Charter Hall Group, is the largest Australian ASX-listed real estate investment trust (A-REIT) that invests in early learning properties.

Charter Hall, Australia’s largest real estate investment trust, currently has 413 centres in its portfolio.