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Childcare Property Fund

Please note: due to enduring global market conditions, this Fund is currently closed to applications. Please contact Orchard Investor Services on 1800 008 494 for further information.

The Fund provides exposure to 209 child care properties valued at over $228 million. The Fund has a broad geographic exposure across Australia and New Zealand with the portfolio of properties leased on long term arrangements to 15 tenants. 

The Fund’s major tenant was previously ABC Learning Centres Ltd.  Goodstart Childcare Limited has signed an agreement to acquire the ABC Learning business subject to obtaining lease assignments over approximately 670 ABC child care centres in Australia including 115 centres owned by the Fund. 

The assignment of these leases was completed on 31 May 2010. Additional tenants leasing multiple centres include Kids in Care with 25 centres, NutureOne with 8 properties, ABC Learning NZ (which is not in receivership) with 25 centres and Preschool Services Australia with 8 centres.

Investment objective

To provide regular partly tax-deferred income with moderate capital growth over the long term by investing in a portfolio of quality child care property assets.

While the Fund currently has an annual distribution payment policy, due to financier requirements, the Fund is not able to make distribution payments to unitholders. 
However, now that the assignment of the ABC leases to Goodstart has been completed, the Fund expects to satisfy National Australia Bank’s requirements in respect of the outcome of the ABC receivership and therefore be in a position to pay a distribution for the year to 30 June 2010.

Investment benefits

The Orchard Childcare Property Fund offers investors:

• A geographically diversified property portfolio with the value underpinned by a high land component;
• A diversified tenant base that receives significant government funding to operate the child care centres and has sound economic demand drivers;
• Long term leases with a weighted average lease expiry period of 9.6 years (as at May 2010)

For information on our Anti-Money Laundering and Counter-Terrorism Financing requirements click here.

Orchard Securities Pty Limited ABN 16 091 909 376 AFSL No. 241053 has prepared this for general information only.  It does not take into account your current or future financial circumstances.  It is important for you to consider these matters and read the relevant product disclosure statement (PDS) before you make an investment decision on holding or acquiring these products. For further information please contact your financial planner or Orchard Investor Services on 1800 008 494.