Think incubator settles acquisitions and secures one more greenfield site
Think Childcare Development (TND), the development and incubator arm of Think Childcare Group (TNK), has confirmed that it has now settled the six new purpose built Nido services announced on 1 July 2020 and in addition has secured one other greenfield site to add to the pipeline.
The six services will transition into TND at around 40 per cent occupancy and cost $5 million.
Once target occupancy has been achieved, roughly expected to be around 12 to 18 months, the services will transition across to TNK at a cost of $13 million, or 4x earnings before interest, tax, depreciation and amortisation (EBITDA).
In addition to confirming the seven settlements, TNK also confirmed that David Lyons, the co-founder of Nido Early School and a third party incubator for the Group, has a further three sites which are expected to be open by the end of 2020.
These sites will be sold into TNK once occupancy targets have been met.
Mr Lyons has extensive experience as a developer in the early childhood education and care sector having developed over 30 services and currently has more than 10 services in his pipeline.
From a financing perspective, TND has confirmed that it was able to close the $11.5 million debt facility announced in the 1 July 2020 release.
To read the announcement please click here.