This article is from the Australian Property Journal archive
A CHARITABLE and not for profit consortium, Good Start, is set to take over 193 former ABC childcare centre leases.
Good Start was set up by charity organisations Mission Australia, the Brotherhood of St Laurence, the Benevolent Society and Social Ventures Australia. The consortium is funded by the Federal Government and has sourced funding from the National Australia Bank.
In addition, it has been granted exemption from payroll tax, income tax, concessional FBT benefits and relief from one off stamp duties in some areas, these benefits are estimated to be ~$20m per annum.
Yesterday Austock Property Management Limited’s Australian Education Trust voted to assign the leases to 193 ABC centres to Good Start.
AET said the assignments will see the continued and uninterrupted operation of the centres with no reduction in income or entitlements. And a new lease security arrangements will be put in place for circa $12.9 million.
AET expects to recover most assignment costs and all outgoings unpaid by ABC in respect to the 193 centres as part of the transaction.
AET said it has considered Good Start’s financial forecasts and business model and based on that information, believes it to be a viable operator of the 193 AET childcare properties.
Good Start is expected to operate approximately 670 properties under the ABC banner.
“Management has strived to achieve the best possible outcome in difficult circumstances, whilst aiming to protect unitholder’s interests. AET has suffered effects from ABC being placed into Receivership and to minimise future potential risk, has given its in principal consent to leases be assigned to Good Start subject to various pre-conditions including the pooled security as outlined.
“Management is of the opinion that based on the information available to it; Good Start appears to represent a viable tenant with rigorous financial, compliance and reporting regimes that should enable it to meet its tenancy obligations,” AET concluded.
Australian Property Journal
