Australian Unity progresses with launch of new fund to invest in ECEC property

Australian Unity, the member owned modern mutual, continues to work towards the launch of its first fund dedicated to investing in early childhood education and care (ECEC) freehold property opportunities marking the arrival of another significant player into the space.  

 

The Australian Unity Childcare Property Fund currently owns seven ECEC properties valued at $34.0 million with a further 13 properties at various stages of exclusive due diligence sitting at a valuation of around $77.0 million. 

 

An Information Memorandum was released on 3 March 2022 that provided details of the Fund itself, the management team and the terms and conditions of the capital raise which is expected to be completed on 30 April 2022 when the new units will be issued to investors. 

 

It is understood Australian Unity has self funded around $20 million into the vehicle with the current raise targeting around $30 million. 

 

Speaking with the Australian Financial Review, Ryan Banting, General Manager for social infrastructure said, “Childcare centres are growing in investor popularity, with the sector enjoying strong bipartisan support.”

 

“Australian Unity’s move into childcare property was a logical extension of its exposure to social infrastructure, which includes specialist disability accommodation, seniors living, hospital and healthcare facilities, and more recently student accommodation.”

 

“Our research estimates that an additional 3000 childcare centres will be needed over the next decade to cope with the growth of two-working-parent families, as more women look to enter or rejoin the workforce to reinvigorate their professional careers,” he said.

 

Australian Unity’s commitment to the ECEC freehold sector comes in the wake of ambitious South Australian based property developers Accord launching their Early Learning Fund in January 2022 with an initial raise of $25 million and five year target of owning eighty centres.

 

In addition, Global fund manager Black Rock announced a partnership with Australian asset manager Federation in October 2021 to create a new joint venture to invest as much as $600 million and more established newcomer HomeCo has already committed in excess of $108 million to the sector. 

 

For more information about Australian Unity please see here.