Daycare Syndication Units Available
Daycare centre syndication, now live and currently returning investors 7%* per annum, paid monthly. Some units still available
Last week the Government’s 2020 Budget announced a $278 million funding boost for Early Childhood Education centres (ECE) for 100 per cent qualified teachers, over the next four years, strengthening investment opportunities in this sector.
One such opportunity is the latest Syndication by property specialists Erskine + Owen, a portfolio of five Daycare centres. The properties are located in urban centres across New Zealand are all fully tenanted and operational, allowing investors to gain exposure to an industry, backed by Government funding.
The Daycare Syndication has a projected pre-tax cash return of 7%* per annum, paid monthly and is valued at $15.55 million. The properties are located in Auckland (Silverdale and Papatoetoe), Pokeno, Tuakau and Dunedin. All five centres are run by experienced operators and have a combined WALT of 12.5 years, due to 10–15 year leases in place.
Toby Hunn, Erskine + Owen’s Business Development Manager, says that units for investment are still available to wholesale investors. “We strongly believe in this offer and have proceeded to settle on all 5 properties, so this investment is now live. We managed to negotiate a rent retention scheme with the vendors of the properties, to protect the rental income for the duration of the lockdown period.”
“The Early Childhood Education sector is funded by the Government and this is expected to continue after the lockdown eases. We have five strong tenants in great properties spread across the country and they are all located in areas not significantly exposed to tourism or the travel industry.”
This follows the successful closure of Erskine + Owen’s most recent syndication offerings to the market, including Wattie’s National Distribution Centre in Hastings at the end of 2019, and 43 Maclaggan Street in Dunedin last year.
For more information on the offer See here
*Projected pre-tax return for full one-year period. Details on how return will be calculated, and the risk associated with the investment and return, are set out in the Information Memorandum.