HomeCo continues building ECEC portfolio with two new acquisitions

HomeCo, the Australian property group focussed on ownership, development and management, has announced its second round of early childhood education and care (ECEC) freehold acquisitions as it continues to build a presence in the sector and work towards a new fund listing in H2 2021. 

The two services acquired had a combined value of $23.2 million and consisted of a Wooloongabba, Queensland centre leased to Busy Bees and a Five Dock, New South Wales centre operating under the Greenwood brand leased to G8 Education. 

Both centres were acquired at a capitalisation rate of 5.50 per cent with the QLD centre purchased for $13.0 million and the NSW centre for $10.2 million. 

These centres will join a group of six centres, consisting of four stand alone centres in Sydney and Melbourne and two centres that are part of multi use facilities in Brisbane and the Gold Coast respectively, that were settled over a four month period up to 31 March 2021 and announced in December 2020.  

HomeCo has previously announced plans to strengthen its funds management platform and accelerate the establishment of a new health, wellness & government focussed REIT, called HealthCo, which will include ECEC centres. 

HomeCo Managing Director and Chief Executive Officer David Di Pilla said: “We remain on track to establish HealthCo later this year and today’s update further demonstrates our ability to source high quality assets which are well suited to the model portfolio strategy we announced last month for HealthCo.”