The news: Childcare centre Edge Early Learning, which leases 31 properties from Arena REIT, entered voluntary administration on Wednesday following missed rental payments in August.
The context: This follows a request from Edge in late July for a rent deferral or abatement while it underwent a corporate restructuring. Arena subsequently dispatched rent default notices in August.
The childcare operator represents 14% of Arena’s annual rental income, however Arena holds approximately $4 million in pooled bank guarantees as security over the lease obligations for the Edge properties.
Arena is currently exploring alternative leasing arrangements and has already progressed discussions with replacement tenants.