Jarra Property is proud to launch the capital raising to fund the development of two, purpose-built, Perth metropolitan childcare centres:
- Green Leaves Early Learning Thornlie; and
- Nido Early School Butler.
Jarra Property’s conviction in the childcare sector is due to the defensive nature of the industry. As a key driver of national labour force participation and productivity, it is recognised as a critical industry by both major Australian political parties.
Investment highlights include:
- Jarra Property underwriting the risk of any development cost overruns.
- The properties being developed at a 15-30% discount to recent comparable sales.
- Significantly reduced development risk due to satisfactory development approvals, binding lease commitments and suitable construction costings, all obtained prior to investment.
- Forecast 7.5% average cash distributions for the first five years (post development period).
- Target IRR of 13.4% (pre-tax and post fees), representing a 2.43x cash multiple of equity invested over the eight (8) year investment term.
- The investment is underpinned by a 15-year lease to Green Leaves Early Learning (3.5% p.a. increases) and 20-year lease to Nido Early School (CPI+1 p.a. increases).
Green Leaves Early Learning and Nido Early School operate more than 100 childcare centres nationally and, in the view of Jarra Property, are at the forefront of the sector in terms of their architectural design, management and service offering.
With strong long-standing relationships with both childcare operators, this Fund includes Jarra Property’s fourth project for Green Leaves and eighth project for Nido.
To find out more about this Fund, please contact Michael Cameron, Commercial Director, on email@example.com or 0402 435 998