22/12/2021 - 12:12

Charter Hall buys $100m WA childcare portfolio

22/12/2021 - 12:12

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Property fund manager Charter Hall’s social infrastructure real estate investment trust has acquired two childcare portfolios for $134 million, including 18 WA childcare centres for $100 million.

Charter Hall buys $100m WA childcare portfolio
Charter Hall has bought Hammond Park's Great Beginnings childcare centre as part of its wider acquisition.

Property fund manager Charter Hall’s social infrastructure real estate investment trust has acquired two childcare portfolios for $134 million, including 18 WA childcare centres for $100 million.

Reflecting an initial yield of 4.6 per cent, the investment comprises 21 properties across WA and Melbourne which the REIT, listed as CQE, purchased for $134.3 million.

Centreplace Capital founder Ian Bowman brokered the deal, saying it reflected a shift in focus for his company.

“After 15 years of developing A grade childcare centres from Geraldton to Albany and creating over 1,750 much needed childcare places, it is time to focus on alternative commercial projects come the new year.”

The Bowman Group childcare portfolio is made up of 13 metropolitan and five regional childcare centres, with a weighted average lease expiry of 12.5 years.

The WA portfolio is underpinned by Goodstart Early Learning and G8 Education Limited.

The Melbourne assets include three newly-built childcare centres in metropolitan Melbourne, acquired on sale and leaseback agreements 100 per cent leased to Nino Early Learning.

CQE fund manager Travis Butcher said the acquisition built on Charter Hall’s relationship with these three childcare operators.

“The addition of these assets will result in CQE’s gross assets exceeding $1.9 billion and continuing to be the largest listed social infrastructure property fund in Australia,” he said.

“These acquisitions have enabled us to upgrade our FY22 forecast distribution guidance by 9.6 per cent from FY21 to 17.2 cents per unit, which is a great result for our investor customers.”

CQE’s shares were up 1.05 per cent to $3.84 at the time of writing.

 

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