The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
22 DAYS UNTIL OUR UNMISSABLE FLAGSHIP CONFERENCE MORE THAN 500 ALREADY ATTENDING
22 DAYS UNTIL OUR FLAGSHIP CONFERENCE 500+ ALREADY ATTENDING
SECURE YOUR SPOTDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
1
print
Print
ResidentialFri 06 Apr 18

Folkestone’s $63m Childcare Acquisition

aeb924a0-6056-4178-9006-b07c11a4f84e

Nine Queensland childcare centres have been swept up in a $63 million move by Melbourne-based investment manager Folkestone.

Folkestone secured its new portfolio with a 20-year leaseback agreement, through its Education Trust, to Avenues Early Learning, with four five-year options available.

The Queensland properties form part of a portfolio of 13 assets offered for sale in late 2017. Avenues Early Learning has decided to concentrate on its business expansion in Sydney and Melbourne, prompting the sizable childcare centre listing.

Proving to be the hot real estate commodity, the Folkestone sale follows the recent combined sales of four south-east Queensland based childcare centres to the tune of $24.075 to private investors.

Related reading: Learning Centre Operator Replaces Permit for Residential Towers with Childcare

CBRE’s Tom O’Driscoll brokered the sale. O’Driscoll said the formal EOI campaign received more than 130 enquiries both domestic and offshore.

“Over the past six months, there has been a strong uptick in demand for childcare assets underpinned by recognised and credible operators,” he said.

“Whilst a lot of noise remains in this sector, there will be a clear difference of value in centres. Avenues Early Learning as a covenant, drives this value due to its level of performance, quality of centres and key locations.”

Related reading: Folkestone Launches Fund to Grab $43.5m Green Square Hotel

The nine properties include 339 Maundrell Terrace, Aspley; 93 Zahel Street, Carina; 110 Burrenbah Road, Jindalee; 51 Landis Street, McDowall; 65 Roseneath Drive, Parkinson; 88 Lister Street, Sunnybank; 385 Chatswood Road, Shailer Park, 123 Kennedy Terrace, Paddington; and 117 Agnew Street, Norman Park.

The sales campaign for the final four assets will soon begin with price expectations in excess of $50 million – reflecting a potential sub six per cent yield across the entire portfolio of 13 centres and total approximate value of $102 million.

Folkestone is the largest ASX-listed REIT that invests in early learning properties. Founded in 2002, it has a current market capitalisation of $701.82m.

ResidentialHotelEducationChildcareAustraliaReal EstateDeal
ADVERTISEMENT
TOP STORIES
Bates Smart Richmond Sportslink HERO
Exclusive

BtR Focus Drives Bates Smart’s Richmond Sportslink Concept

Leon Della Bosca
6 Min
Exclusive

Carparking Correlation: How Parking Fees Provide Office Sector Health Check

Taryn Paris
6 Min
Molti chief Ben Teague out front of 32 Mercer Road Aramadale (rendering)
Exclusive

Buy to the Sound of Cannons: Molti’s Counter-Cyclical Move to Melbourne

Leon Della Bosca
5 Min
Exclusive

Tapping the Bunnings ‘Halo Effect’

Taryn Paris
5 Min
Exclusive

‘Construction Not a Scale Game’: Hutchinson

Phil Bartsch
9 Min
View All >
Industrial

Data Centres Drive Goodman Group A-REIT Success

Taryn Paris AND Shravanth Reddy
Dexus Sydney CBD Supertall EDM
Planning

City Backs Height Boost for Sydney Supertall Towers

Vanessa Croll
FK's rendering of Woolworths and Pace's plans for the ex-ABC studio site at 10-16 Selwyn Street in Elsternwick, Melbourne.
Residential

Mayor Rounds on State After Elsternwick Approval

Marisa Wikramanayake
Pace and Woolworths plans for a former ABC Studios site have been greenlit, but not everyone is happy with the decision…
LATEST
Industrial

Data Centres Drive Goodman Group A-REIT Success

Taryn Paris AND Shravanth Reddy
3 Min
Dexus Sydney CBD Supertall EDM
Planning

City Backs Height Boost for Sydney Supertall Towers

Vanessa Croll
3 Min
FK's rendering of Woolworths and Pace's plans for the ex-ABC studio site at 10-16 Selwyn Street in Elsternwick, Melbourne.
Residential

Mayor Rounds on State After Elsternwick Approval

Marisa Wikramanayake
3 Min
Residential

Thirdi Lifts Covers on 500-Home Precinct at Gladesville

Lindsay Saunders
2 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/folkestones-63m-childcare-acquisition