Australian Unity has launched a new childcare property fund with a seed portfolio of six childcare centres with a combined value of more than $30 million.

The Fund is also in advanced stages of exclusive due diligence on a further 16 childcare centres valued at approximately $80 million, located in Adelaide, Melbourne and Perth.

The combined portfolio will provide for more than 1,650 childcare places located in some of Australia’s key demand catchments.

Ryan Banting General Manager – Social Infrastructure at Australian Unity, said the Australian Unity Childcare Property Fund aims to deliver investors stable, secure income, capital growth, and exposure to critical community infrastructure via a long-term investment in childcare real estate. The Fund’s forecast distribution yield is 5.5-6.5% per annum with a target portfolio internal rate of return range of 9-10% per annum.

“Childcare centres are growing in investor popularity, with the sector enjoying strong bipartisan support. They will also play a key role in Australia’s economic prosperity in supporting parents return to the workforce, providing families with access to important early childhood education resources as well as creating employment opportunities across the community.”

“Our research estimates that an additional 3,000 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 re-join the workforce to reinvigorate their professional careers.”

Mr Banting said childcare property is a logical extension of Australian Unity’s established social infrastructure portfolio, which includes specialist disability accommodation, seniors living, hospital and healthcare facilities, and more recently student accommodation.

“We know childcare centres play a critical role in supporting real wellbeing in Australian communities and Australian Unity is pleased to be bringing significant capital to bear to support the continued growth and evolution of the sector.

“As long-term investors in social infrastructure, we know how to ensure these assets deliver for investors while providing a valuable service to their communities. Our focus is working with the right childcare operators to support the expansion and improvement of these centres to ensure they are high-quality, fit for purpose, and able to manage future demand.”

The Fund will commence its next capital raise in April this year and is seeking to raise a further $40 million to support its acquisition pipeline and continued growth.

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Further information:
Units in the Australian Unity Childcare Property Fund are issued by Australian Unity Funds Management Limited (AUFM) ABN 60 071 497 115, AFSL 234454. AUFM is part of the Australian Unity Group of companies. This information is general information only and is not intended to be relied upon as financial product advice and does not take into account the objectives, financial situation, or needs of any particular investor. In deciding whether or not to acquire, hold or dispose of the product, investors should obtain a copy of the Information Memorandum (IM) and consider whether the product is appropriate to their particular circumstances and objectives. A copy of the relevant IM is available by calling our Investor Services team on 1300 997 774. Prior to investing in any financial product, an investor should consult with a financial and/or tax adviser. Investment is only available to investors who are ‘wholesale clients’ for the purposes of section 761G of the Corporations Act. Past performance is not a reliable indicator of future performance

About the Australian Unity Childcare Property Fund
The Australian Unity Childcare Property Fund focuses on the delivery of stable secure income, capital growth and social impact via a long-term investment in childcare real estate. The portfolio is currently valued at more than $30 million and includes six centres located in Queensland, Western Australia and Tasmania.

About Australian Unity
Established in 1840, Australian Unity is a member-owned wellbeing company with 260,000 members and more than 700,000 customers. Our range of health, wealth and care products and services provides member, customer and community value that is supportive of personal and community wellbeing.
www.australianunity.com.au