Childcare property trust Arena REIT has entered into agreements with the Victorian Government to design and construct multiple early learning centres in a $15 million project.
The early learning centres will each accommodate over 100 licensed childcare places and will be located adjacent to selected new schools being built by Learning Communities Victoria.
Arena REIT has been granted ground leases at specific locations on a peppercorn rental for a term of approximately 26 years.
Lloyd Group Pty Ltd has been appointed as the contractor to complete the new centres.
On completion, the centres will be leased to the YMCA who will pay rent, operate and maintain the centres for the 26-year period.
On expiry of the ground lease, the properties will revert to the State.
Arena REIT Managing Director Bryce Mitchelson: "We are very pleased to be partnering with the State of Victoria and working with Learning Communities Victoria and YMCA to deliver these high quality early learning facilities in conjunction with the new schools PPP project."YMCA Chief Executive Glyn Davies: "This is an exciting project which will deliver a great outcome to the local communities in these locations. YMCA is very pleased to join with Arena in the planning, development and operation of these important local infrastructure facilities. We hope to do more together in the future."