Charter Hall Education Trust To Acquire 13 Early Learning Centres

  • Mar 26, 2019 AEDT
  • Team Kalkine
Charter Hall Education Trust To Acquire 13 Early Learning Centres

ASX listed Real Estate Investment Trust (REIT), Charter Hall Education Trust (ASX: CQE) has made an announcement that it is going to acquire 13 early learning centres for a total consideration of $75.5 million which will be funded through a fully underwritten $100 Mn institutional placement of fully paid units in CQE. Alongside the Acquisitions and Placement, the Trust has also announced about various capital management initiatives to position the Trust for the future.

Acquisition Portfolio comprises a 100% freehold interest in 13 early learning properties which includes 2 completed centres, 5 centres which are going to complete between April 2019 and July 2019 and 6 fund-through development centres which will complete between November 2019 and March 2020.

To acquire these learning centres, the Trust is going pay a total consideration of $75.5 million which reflects a weighted average initial yield of 6.5%.

In an announcement made on 26 March 2019, the Trust has announced that it is going to undertake a fully underwritten institutional placement to raise approximately $100 million to fund the Acquisitions and associated transaction costs as well as provide balance sheet headroom to finance CQE's current pipeline. The Placement is fully underwritten by J.P. Morgan Securities Australia Limited.

The Placement will be issued at a fixed price of $3.35 per Unit which represents a 5.1% discount to the distribution adjusted last close price of $3.53 on 25 March 2019 and 4.0% discount to the distribution adjusted 5-day VWAP of $3.49 on 25 March 2019.

Units issued under the Placement will rank equally with existing CQE Units and these new Units will not be entitled to the CQE’s distribution for the three months ending 31 March 2019. New Units issued under the Placement will be entitled to the distribution for the three months ending 30 June 2019.

Alongside the Acquisitions and Placement, the Trust is also increasing its debt facilities by $50 million to provide increased liquidity in order to fund its current pipeline while remaining below target Gearing range of 30% to 40%.

The Trust is also increasing and extending the Trust’s hedging positions to take advantage of a more favourable interest rate environment.

In today’s announcement, the Trust has confirmed that it is maintaining its FY19 forecast distribution guidance of 16.0 cents per Unit. The company has also provided its indicative FY20 distribution guidance of 16.5 – 16.6 cents per Unit implying a distribution growth of 3.5 – 4.0%.

Following the Acquisitions, Placement and capital management initiatives, the Trust's pro-forma December 2018 balance sheet gearing is forecast to be 27.0%.

CQE’s shares were placed in a trading halt today at the request of CQE to enable an announcement to be made to the market of a significant transaction, involving material acquisitions funded by an underwritten institutional placement. In the past six months, the share price of the company increased by 25.70% as on 25 March 2019 and is trading at a PE ratio 10.160x. CQE’s shares last traded at $3.570 with a market capitalization of circa $923.07 million as on 26 March 2019 (AEST 1:49 PM).


This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.


All pictures are copyright to their respective owner(s) does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.


There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK