Australian property conglomerate Oreana launches $60m ECEC freehold investment fund

Oreana, an Australian development, construction and investments group, has confirmed its plans to raise $60 million to invest in early childhood education and care (ECEC) freehold assets developed and constructed by its property division via a new Early Education Fund. 

“This is an important milestone for our business as we continue to expand our offering to the Australian market. We have experience in identifying, developing, construction and managing early education assets which allows us to mitigate risks and capitalise on opportunities with greater confidence,” Luke Moore, Oreana CEO – Investments said. 

“As an integrated business our projects are commenced with the end in mind. We have ‘skin the game’ and we are committed to delivering quality assets that reflect what the end client needs from early in the design phase.”

The new fund will sit alongside three other funds launched by the business including a Protected Income Fund, Real Income Fund and a Professional Partners Fund all of which invest in Oreana assets as well as external opportunities. 

Strategic investment in Aspire Early Education created skillset underpinning new fund

Oreana has been operating in the early education sector for more than a decade having developed a substantial understanding of the freehold dynamics of the space through an extensive partnership with leading Victorian provider Aspire Early Education. 

The new fund will be used as a vehicle for investors to secure returns through the acquisition of ECEC freehold assets designed, developed and constructed by Oreana with the fund also having additional flexibility to deploy capital into value adding assets including direct property, managed Funds, REITs, syndicates, and companies all with early education asset exposures.

The Fund aims to deliver an overall return of 10 per cent (net of fees) including a stabilised annual yield of 5.5 per cent, distributed quarterly, by investing in Australian early education assets.

“Now is the right time given the economic cycle – as interest rates have started to come down this will likely deliver additional returns to investors. We have all the elements to deliver a market leading fund in this space and are bringing this strategy to investors offering a new way to gain exposure to the early education sector,” Mr Moore said. 

To learn more about Oreana and its new fund click here.