This article is from the Australian Property Journal archive
THINK Childcare has forked out $5 million for six purpose built, brand new metropolitan childcare centres trading under the Nido Services brand, which it expects will have an end value between $10 million and $12 million.
The properties are located in Padbury, Canning Vale and Craigie in Western Australia, Pennington in South Australia, and Wyndham Vale and Werribee in Victoria.
The Werribee location has 151 places and the portfolio averages 96 places. Rent per place is $3,300 per year and the average lease term over the properties including options is 39 years.
The listed operator said the acquisition provides a short runway from current utilisation of 40% to breakeven utilisation, and the cost of trade-up risk would be largely borne by a third party.
A stapled structure between the entities was created last year with a view to bringing the development and incubation function of new and trade-up leasehold child care services under TND.
Think Childcare Development will be fully funded to execute on its pipeline of 24 services over the next 18 months, and is independently funded from Think Childcare. The pipeline has an end value of about $60 million and a projected EBITDA of circa $15 million.
