ECEC development investment portfolio with estimated value of $175m comes to market

ECEC development investment portfolio with estimated value of $175m comes to market

by Jason Roberts

July 19, 2021

Burgess Rawson, the early childhood education and care (ECEC) focused real estate and business broker best known for its regular portfolio auctions, has been appointed, in conjunction with two other agents, to market a portfolio of development sites within an estimated value of $175 million. 

 

The portfolio, which consists of 21 opportunities of which 20 are located in Victoria, has been amassed by Allaf Property Group, under the stewardship of their Director Ayman Allaf, a veteran of the ECEC development space. 

 

Adam Thomas, Director at Burgess Rawson said, “This is an incredibly exciting and interesting opportunity for an investor or operator to gain significant exposure to the ECEC space in one line.”

 

“Demand for ECEC property exposure is very strong right now and when it is combined with the quality of this portfolio we anticipate strong demand from investors from both within Australia and overseas.”

 

A well diversified portfolio of high quality development sites largely across Victoria

 

The portfolio includes operational centres and a range of sites at various stages of construction with all already committed to be tenanted by established operators including Think Childcare, Affinity Education, Story House Early Learning, Explorers Early Learning and Eden Academy

 

Commenting Mr Allaf said, “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. 

 

The total portfolio income on completion is estimated at $8.7 million with a weighted average lease expiry (WALE) of 18.5 years across the 21 sites. Initial lease terms range from 15-20 years plus further ten-year options across all opportunities.

 

“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.”

 

The Expressions of Interest campaign will close on Wednesday 11 August at 2pm AEST with interest to be directed to Adam Thomas and Natalie Couper at Burgess Rawson or Julian Heatherich and Benson Zhou (Savills) and Jimmy Tat, Sandro Peluso and Marcello Caspani-Muto (CBRE).

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