This article is from the Australian Property Journal archive
SINGAPORE’S MindChamps has snapped up eight early learning centres around Sydney from the Malek family for $40.837 million, increasing its Australian portfolio to 20 centres and highlighting continued strong demand for well-located assets.
The Malek family and its company subsidiaries own and operate the eight centres in six suburbs, namely Mascot, Parramatta, Albion Park, West Hoxton, Kemps Creek and Shellharbour.
MindChamps founder CEO David Chiem said the acquisitions will significantly strengthen the group’s presence in Australia.
He added MindChamps’ 2018 full year results recorded growing contributions from its Australian operations, making up 32% of the group’s total global revenue.
“MindChamps began as a research team in Sydney in 1998, and now, having proven the success of our breakthrough early childhood education model (known globally as the 3 Minds Education Movement), I am proud to be able to bring it back to Australia where it first began, to make a difference to the development of young minds here,” Chiem said.
Upon completion of these acquisitions, the Singaporean group will have 82 centres across Singapore, Australia, Abu Dhabi, Dubai, the Philippines, Myanmar and Vietnam.
Peritus Childcare Sales exclusively ran the competitive auction and bid process involving local and offshore groups and negotiated the complex transaction over a nine-month period.
Peritus Childcare Sales’ principal Peter Fanous said, “The deal negotiations, spanning over 9 months, required a unique multi-disciplinary approach involving institutional brokerage, valuation, trade area analysis and strategic transaction advisory. By providing expertise on all fronts, Peritus Childcare Sales was instrumental in orchestrating a highly competitive and efficient transaction for both our client and the purchaser”.
Despite concerns of an oversupply, with ASX-listed Think Childcare and G8 Education both posting lower annual profits, this latest acquisition highlights continued strong demand for the asset class in growth areas.
Earlier this week a Melbourne’s city fringe centre sold for $10.25 million, the first childcare facility within 1.5kms of the CBD to changed hands in five years.
Late last month, the Charter Hall Education Trust swooped on a 13 properties portfolio for $75.5 million. Most of the assets are located in inner or middle ring suburbs. Seven are located in Brisbane, in Camp Hill, Taringidi, Yeronga, Corinda, Bardon, Holland Park West, Middle Park and Riverhills, and in Yarrabilba to the south-east; three Melbourne assets are in West Footscray, Keysborough and Elwood; and there is one asset in Sydney, in South Coogee.
In the same month, Think Childcare acquired four centres in Perth for $6.5 million and a mainland China investor bought a Pakenham facility for $5.02 million, after offering a six-day settlement.
Australian Property Journal
