A diverse mix of childcare centres throughout NSW have sold for a price of $55.2 million to Arena REIT.
The Affinity Education Group’s childcare portfolio comprises seven assets across six key locations, underpinned by long-term leases to tier-one operator, Kids Academy. Four of these assets are situated in the Sydney Metro region with three more across the Central Coast.
The portfolio represents the largest childcare transaction in NSW, together with the highest-value single childcare centre sold since June 2023.
The Colliers team of Jordan McConnell, Matthew Meynell, Gracian Marando and Harry Bui sold the portfolio.
“The offering presented the purchaser a unique opportunity to increase their operational holdings within the NSW market as well as further broaden their tenant diversity across the REIT,” Colliers Head of Premium Investments, Mr McConnell advised.
“The portfolio provided the opportunity to take advantage of a blue-chip covenant offering security of diversified income of over $3.3 million and an attractive WALE of 11.2 years, with the purchaser ultimately attracted to the strong fundamentals on offer,” Colliers Investment Services Managing Director, Matthew Meynell commented.
“The campaign yielded overwhelming levels of enquiry and interest with the purchaser competing against individual parties to successfully secure the portfolio in one line,” Colliers Manager, Gracian Marando added.
Deemed an essential service and underpinned by both Federal and State Government funding, childcare remains one of the country’s most sought-after commercial asset classes. Since 2020 Colliers has remained the market leader for the sale of high-value childcare investments in New South Wales, transacting over $133 million worth of assets over $7.5 million.
The centres include Kids Academy Penrith, Regentville, Warnervale, Woongarrah, Glenmore Park and Erina Heights, as well as Kids Academy Pre-School in Glenmore Park.
Affinity Education Group is the third largest long day care provider in Australia. Founded in 2008 to provide high-quality early childhood education and care services nationwide, Affinity currently operates over 225 early education and childcare centres across the country.
