Melbourne July 7 - The largest, publicly marketed early education investment portfolio in recent history is poised to hit the global investment market on Tuesday 13th July. “Comprising 21 opportunities predominantly across Victoria, the total portfolio is valued at more than $175 million.”
Established childcare developer and investor Allaf Property said that investor appetite for childcare assets is at an all-time high, with 48 childcare assets totalling almost $262 million sold nationally in the first half of 2021.
“Sales results have shown strong yield compression for quality assets with yields as low as 4.39%,” said Director Ayman Allaf. “Investors are clearly drawn to the long-term stability of childcare, especially with ongoing Federal Government funding in place and occupancy rates returning to pre-COVID levels.”
Mr Allaf added that through COVID, it became very clear that childcare services are critical to our economy with both sides of Government showing support.
“The very first funding commitments made at the start of the pandemic were to the medical sector and childcare,” he said. “The importance placed on childcare will continue. Increasingly, families need two incomes to manage mortgage repayments so the need for quality childcare services will only grow.”
The designation of childcare as an essential service also benefited quality operators.
“Operators have bounced back stronger than ever,” said Mr Allaf. “And with strict industry regulations in place, the quality of operators, their facilities and service offering is impressive, which is appealing for investors.”
Mr Allaf said that a broad range of investors will show interest in development sites, including private investors and institutional funds, both in Australia and worldwide.
“As the developer, we have completed thorough research to select the sites; finalised market leading, purpose built centre designs; and appointed builders,” said Mr Allaf. “All assets have long term leases in place. Investors reap the benefits of this expertise.”
With almost 50 developments completed or underway, Allaf Property is renowned for its childcare sector expertise.
“We have always approached each development as if we were going to be the long-term owners,” said Mr Allaf. “Quality is our priority – from site selection to design and lease structure – which provides investors with confidence.”
All assets within the portfolio are strategically located in strong performing metropolitan areas with high quality, national and experienced tenants in place, including Think Childcare and Explorers Early Learning. Initial lease terms range from 15-20 years plus further ten-year options across all opportunities.
The portfolio is marketed by three conjunctional agents: Sandro Peluso, Jimmy Tat and Marcello Caspani-Muto (CBRE) and Julian Heatherich and Benson Zhou (Savills), Adam Thomas and Natalie Couper (Burgess Rawson)
The Expressions of Interest campaign will close on Wednesday 11 August at 2pm AEST.
For further details please contact one of the exclusive selling agents or visit earlyeducationportfolio.com.au
