As an active property manager, we work collaboratively with our tenant partners. We maintain strong working relationships and seek to understand any challenges our tenant partners may be facing. We are quick to respond to requests and act fairly and with integrity in commercial negotiations.
How we work with our tenant partners
We recognise that our tenants’ use of space and expectations of their tenancy are constantly evolving. In many cases, they are exploring new business opportunities and see property as an important lever to gain competitive advantage. In this context, rather than maintaining a traditional landlord and tenant relationship, we strive to be an ‘accommodation partner of choice’. We also work with our tenant partners to pursue mutually beneficial outcomes.
Our focus on sustainability
Due to the nature of our triple net leases, tenant partners maintain operational control of Arena’s properties. Given the environmental and social footprint of our assets, we are able to leverage our own sustainability initiatives by working collaboratively with our tenant partners. This approach forms the foundation of our overarching approach to sustainability, which is to actively seek out ‘Partnerships for Change.’ Our partnership approach delivers mutually beneficial outcomes for our communities, team, tenant partners and ultimately our investors.
Partnership story: Annie Bryce, CEO, Edge Early Learning
An active fund manager
We are also a fund manager and have successfully applied our property expertise to build a strong record of delivering superior returns managing unlisted funds that invest in the healthcare property sector.
Partnership story: The PHC Syndicate was established in 2001 and acquired a property in Darlinghurst in a sale-and-leaseback transaction from Healius (then Primary Healthcare). The property had been newly constructed for use as a medical centre, and included radiology, day surgery and IVF services.
The property was well located in Darlinghurst, including being in close proximity to St Vincent’s Hospital, with a strong tenant covenant in the attractive healthcare real estate asset class. Arena’s active management included a material lease restructure, material restoration works and an active sale campaign during 2021.
The property sale settled in March 2022 and delivered PHC Syndicate investors an annualised return over the life of the investment of 13.43%, outperforming the ASX 200 Accumulation Index by 5.36% per annum and the AREIT ASX 200 Accumulation Index by 6.55% per annum.