HomeCo delivers on commitment to ECEC with settlement of VIC centre tenanted by Guardian
HomeCo, continues to deliver on its commitment made last year to enter the early childhood education and care freehold sector in Australia with the settlement of one of its two proposed Victorian centres for a total of $8.6 million.
The site located in Essendon is currently tenanted by Guardian Early Learning and was purchased at a yield of 5.3 per cent, slightly below the average indicative yield of 5.6 per cent contained in the capital raising presentation released in December 2020, and lower than yields recorded at Burgess Rawson’s last property Auction also in December.
Overall Homeco has committed to purchase six centres with two in each of Sydney, Melbourne and Brisbane for a total investment of $131 million, with $62 million to be paid up front and the balance made up of fund through contributions. It is expected that all centres will be settled by 31 March 2021.
HomeCo’s announced entry into the ECEC space marks a first for HomeCo, who were previously best known for taking over and repurposing the now defunct Masters’ large format hardware stores but have since accumulated a range of Health, Wellness and Government Services assets ahead of what is anticipated to be a new REIT launch at some point in 1H CY2021.