This article is from the Australian Property Journal archive
The Australian Education Trust and ABC Learning Centres are looking at establishing a real estate investment trust to hold child care centres in the United States.
The fund will comprise of child care centres currently leased to ABC’s US subsidiary, Learning Care Group Inc.
The proposed fund will be initially listed on the Australia Stock Exchange and will be similar to a number of property trusts currently listed on the ASX which hold assets overseas, including Tishman Speyer Office Fund, Reckson New York and JF US Industrial Property Trust.
Austock Property Funds Management, the responsible entity for AEU and ABC Learning Centres will launch the fund once the foundation portfolio of child care centre properties have been acquired.
Meanwhile, Austock has appointed Vin Harink as the chief executive of property funds management business effective from July 01, 2006.
Harink was appointed the acting chief executive on May 4, 2005 and during the last 12 months, he has reign over the restructuring of AEU into a pure property trust and has nearly doubled the number of properties it owns.
The number of childcare centre properties owned by AEU has increased from 171 as at December 2005 to 207 centres as at June 2, 2006.
Meanwhile, a further 21 settlements are expected to be completed by the of 2006 financial year.
AEU is also expected to settle on a further 24 properties valued at $27 million by June 30, 2006, taking the trust’s total number of properties to 247.
Currently, AEU has a market capitalisation of $144 million with approximately $185 million in funds under management, this is expected to increase to $205 million by June 30, 2006.
AEU said the pipeline for the 2007 financial year is strong with 34 contracts already exchanged and a further 58 under negotiation.
The value of the properties currently under negotiation is approximately $60 million.
By Adam Parsons
