Arena REIT (ASX:ARF) said it was conducting due diligence on a proposed transaction, under which Goodstart Early Learning will acquire early learning center businesses operated by Edge Early Learning, as it considers its consent to the assignment of leases associated with the transaction, according to a Wednesday Australian bourse filing.

The administrator of Edge Early Learning entered into conditional heads of agreement with Goodstart Early Learning for the acquisition of 31 early learning center businesses and the proposed transaction includes services at 20 of the 27 center owned by Arena and occupied by Edge. Rent is currently being received on the 27 Arena-owned centers.

The administrator is continuing to pursue the sale of the remaining 33 centers currently operated by Edge, which includes a further seven Arena-owned centers and Arena will continue to engage with the administrator to seek a solution that maximizes long-term outcomes for security holders, the filing added.

Arena REIT's shares rose past 14% in recent trading on Wednesday.