Property syndication specialists Erskine and Owen have launched a new syndication offer to wholesale investors for a portfolio of five established and fully tenanted daycare centres in popular urban centres across New Zealand.
Offering a projected pre-tax cash return of 6.6 percent per annum, paid monthly, the new syndication offer is for five fully tenanted daycare centres valued at $15.55 million – 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.
This follows the successful closure of Erskine and 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 earlier last year.
Toby Hunn, business development manager and syndicated sales at Erskine and Owen, says that the offer, which has been fully underwritten, closes on March 9.
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“This is a strong portfolio of properties for investors looking to get into syndication or add to their investments in this space. The daycare centres are all fully tenanted on long leases and with built-in rent increases.
“Early childhood education is a growing business sector, and a growth investment market as demand increases annually. Childcare is becoming an integral part of modern family life; since 2008 the proportion of children enrolled in early childhood education (ECE) has risen to 96.6 percent, and the government recognised this by committing an additional $396.9 million in its 2018 budget to fund ECE care for an extra 14,000 children by 2019/2020. Additionally, all the properties within this offer are Ministry of Education (MOE) registered.
“The $50,000 minimum investment for wholesale/eligible investors is an affordable entry point to a high quality offer in a growing and attractive market sector. Further, the 6.6 percent projected cash return is paid monthly, plus investors benefit long term from any capital appreciation on the properties. After the enthusiastic uptake of our most recent syndication offers, and the number of investors who missed out on them, we are already fielding considerable interest in the offer.”
