May 2022 Newsletter
Investors looking to group sales
As demand continues to rise for childcare property, investors are seeking opportunities for group sales to turbocharge their holdings.
Childcare Concepts Founder Phillip Malek said the company has experienced a rise in demand from investors and corporates seeking group sales to rapidly expand their portfolios.
“We already have a number of group sales underway which have attracted strong interest from buyers looking to quickly capitalise on huge demand in the sector,” he said.
“With our experience working across the industry to facilitate sales and acquisitions and create engaging, viable childcare centres, Childcare Concepts is cementing itself as a group sales leader.”
Recently, Childcare Concepts Queensland ran a very successful expression of interest campaign for a large group of childcare centres which achieved a very high level of interest from potential buyers. Childcare Concepts was able to secure an experienced purchaser within days of the campaign closing.
The Childcare Concepts team is continuing to work with the vendors and purchasers and their legal teams to undertake due diligence across the four centres and draft new lease documentation to ensure the purchase and transfer processes continue smoothly.
In NSW, the team has sold five centres on the mid-north coast to an experienced corporate group for a record, exceeding the vendors’ expectations.
Negotiations are ongoing for the sale of a further group of three centres and a group of nine, ensuring Childcare Concepts is the experienced and trusted leader in group sales.
Spotlight on David Shaw
This newsletter edition we are putting the spotlight on our NSW Sales Representative, David Shaw. David is a Camden local who returned from the inner city recently to be among family who has been in the area for over 100+ years.
“I know and love this area,” he said. “ This area has always felt like a second home to me and like most families, we were looking for a lifestyle change where we had space to grow our young family”. The countryside is so picturesque. Moving was one of the best decisions we’ve ever made.”
Historically, David’s family has strong connections to the region as well, with family members representing the local council and operating local businesses. His grandmother was a bronze medal-winning Olympian in pistol shooting who carried the Olympic torch through Camden. David is a very proud member of his local community and eager to give back.
As a “people person”, David enjoys helping people find the right centre for their childcare business. “It’s great to help people get a result,” he said. “I love being able to assist people to find their dream job and financial independence.
David is well versed in the childcare sector. His wife is a qualified Early Childhood Teacher of 16 years with a Master’s Degree in Early Childhood Education and he has two young children, aged six and two years, who have enjoyed their time in early learning.
Before joining Childcare Concepts, David worked in a Sydney brand of Flight Centre where his sales record helped to transform it from one of the lowest-performing outlets into one of the most improved in the region.
So if you’re thinking of selling have a chat or catch up for coffee with David Shaw first on 0421 739 977.
Australian unity expands it’s $30 million childcare property fund
Demand for childcare investments continues with Australian Unity continuing to expand its new $30m childcare property fund.
The Australian Unity Childcare Property Fund started with a seed portfolio of six childcare centres across Queensland, Western Australia and Tasmania and is undertaking due diligence on a further 13 centres valued at some $75m.
The centres are located in Adelaide, Melbourne and Perth and the combined portfolio would provide for more than 1650 childcare places.
The Fund is forecasting a distribution yield of 5.5-6.5 per annum and says it is aiming to deliver stable, secure income and capital growth for investors.
Australian Unity kicked off a capital raising in April aiming to raise a further $40m to support its acquisition pipeline and intends to expand to $250m within three years.
Strong sales continue in the childcare sector
In Melbourne, a brand-new childcare centre in Narre Warren sold for $10.1m in April to national operator Imagine Childcare on a tight yield of 4.2 per cent. Located in Melbourne’s outer southeast, the centre sits on a 4031sqm site on the corner of Capra Court and Hallam North Road and is approved to cater for 130 children. The auction featured five bidders.
In Queensland, Gold Coast-based Harmony Early Learning has signalled its intention to almost double its south east Queensland property portfolio. It will invest $85m over the next two-and-a-half years to add nine greenfield sites to its current 11 properties.
The greenfield sites will be developed in East Brisbane, Griffin, Bulimba, Thornlands, Bardon, Graceville and Yeerongpilly in Brisbane and at Broadbeach Waters and Burleigh Heads on the Gold Coast.
The company said they were focussing on southeast Queensland and northern New South Wales as the centre of the strongest population growth in Australia and saw opportunities for expansion with growth and centre closures due to the pandemic and staff shortages.
Sales continue to achieve good yields
Recent childcare centre sales on the Gold Coast have also demonstrated the strong demand in the region. Strawberry Bush Early Learning Academy Centre at Helensvale sold for $4.02m in April, at a 4.8 per cent yield.
It follows the sale of Sanctuary Early Learning at Maudsland on the Gold Coast for $8.154m, a yield of 4.97 per cent.
Commercial property auctions in Sydney last month also featured the sale of a Merrylands childcare centre for $7.1m – a 4.25 per cent return.
Childcare Concepts offers an unparalleled childcare centre brokerage, including full appraisal, sales, purchasing, leasing or development.
With more than 50 years’ combined experience across the team, Childcare Concepts has the expertise to help you through your childcare centre journey.
Contact our NSW team on 0423 754 855 or our Queensland office on 0407 572 725.
Approved providers panel discussion
Childcare Concepts is delighted to be sponsoring the ACA Qld Conference’s Approved Provider’s luncheon again this year.
We are looking forward to seeing many Approved Providers at this valued event thanks to ACA Qld on Friday 3 June 2022.
Hilary Knights and Phillip Malek will also be at the conference on Saturday and Sunday and be available to answer any questions you may have about the current marketplace, listings, and recent sales.
Pop by Booth 48 during the conference to catch up with the team and hear about the latest sales, yields, and your listing options. See you then.
August has been another record month for Childcare Concepts with centres being viewed over one weekend and offers secured immediately after which is a great result for vendors.
Childcare property continues to offer strong yields. Find out how the economic situation is impacting childcare and childcare property with the experts Childcare Concepts
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